This paper considers four competing propositions to explain the convex relationship between inventories and the cost-adjusted basis called the 'Working curve' - the convenience yield, the risk premium, data aggregation and the imbedded options value inherent to a futures contract. We use 70...

We propose to use two futures contracts in hedging an agricultural commodity commitment to solve either the standard delta hedge or the roll-over issue. Most current literature on dual-hedge strategies is based on a structured model to reduce roll-over risk and is somehow difficult to apply for...