North Carolina State University has a premier faculty of empirical economists that
focus on agricultural markets. For the past several years GeoGrain has been working
collaboratively with faculty and graduate students on research projects that explore
the dynamic relationships in cash grain markets.
Recent research by our team of investigators has explored convergence problems between
cash and futures markets. Utilizing GeoGrain’s extensive cash price data, the team
found that when the futures market prices failed to converge with cash market prices
at the delivery location, there were widespread basis impacts across the country.
In other words, farmers delivering to elevators far removed from futures market
delivery points experienced similar negative price impacts as the futures market
In an effort to better understand the complex relationships between transportation
and regional grain pricing, GeoGrain has recently provided a research endowment
to North Carolina State University. This project will help gain insights into the
interrelationships between barge pricing and grain basis throughout the country.