Corn Futures and Cost of Carry Model

The speaker discusses the cost of carry model and its application to the corn futures contract.  See how the seasonality of the corn harvest (in addition to storage costs) creates a sharp drop in the forward contract to reflect the lack of storage needed during the harvest months.The speaker discusses the cost of carry model and its application to the corn futures contract.  See how the seasonality of the corn harvest (in addition to storage costs) creates a sharp drop in the forward contract to reflect the lack of storage needed during the harvest months.