![](/profile/get-photo.asp?memberid=20&type=profile&rnd=581) Centre county Pennsylvania, USA | Yes, the chart captured cash corn prices for entire US geographical area, as reported by NASS. Cash corn price is nearby future price + basis. So, cash corn price (and volatility) depends on basis in its geographical area. Attached chart illustrates that. Top panel shows a measure of cash price volatility for total US geographical area. Bottom panel shows that same information for Pennsylvania geographical area, as reported by NASS. The volatility measure used in those panels is the ratio of cash price standard deviation to cash price mean for the 12 months in each year. By that measure, volatility greater than 5% is typically needed for positive return from on-farm storage.
(US and PA cash corn volatility.jpg)
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US and PA cash corn volatility.jpg (172KB - 67 downloads)
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