FRM: Corn futures and cost-of-carry

The cost of carry model can be applied to corn (as a commodity). However, a significant feature of corn (aside from material storage cost, reflect in a near term contango) is seasonality: during harvest months (Fall in the U.S.) we expect an abrupt drop in the forward to reflect the lack of storage needed during harvest. For more financial risk videos, visit our website! http://www.bionicturtle.com