TABLE 4. AVERAGE NET RETURNS, MARGIN ACCOUNTS, OVER AND UNDER HEDGES AND SUPPORTING STATISTICS FOR PREHARVEST MARKETING STRATEGIES AND A NAIVE HARVEST CASH MARKETING STRATEGY: IOWA AND OHIO CORN DATA

Strategies

States & Grain

Months or years

Average Net Returns

t -test

Probability

 

 

 

Mean

Std dev

CV

 

 

 

 

 

($)

($)

%

 

 

Hedge I

Ohio Corn

Feb or May

60013

23351

0.3891

0.8909

0.3848

Hedge I

Iowa Corn

Feb or May

54933

38536

0.7015

0.8960

0.3821

Hedge II

Ohio Corn

Feb or July

63521

26043

0.4100

1.5903

0.1292

Hedge II

Iowa Corn

Feb or July

58769

41131

0.6999

1.5631

0.1354

 

 

 

 

 

 

 

 

8020 put/hedge

 

 

 

 

 

 

 

Mixed Hedge Put I

Ohio Corn

 

58185

24765

0.4256

1.8225

0.0934

Mixed Hedge Put I

Iowa Corn

 

57856

38381

0.6634

1.8298

0.0922

 

 

 

 

 

 

 

 

8020 put/hedge, Feb short hedge

 

 

 

 

 

 

 

Mixed Hedge Put II

Ohio Corn

 

62284

26787

0.4301

2.3381

0.0375

Mixed Hedge Put II

Iowa Corn

 

62591

39697

0.6342

2.3795

0.0348

 

 

 

 

 

 

 

 

Synthetic put, Feb short hedge

 

 

 

 

 

 

 

Synthetic I

Ohio Corn

h/July call

62848

23518

0.3742

1.6151

0.1323

Synthetic I

Iowa Corn

h/July call

63122

38171

0.6047

1.5668

0.1431

Synthetic II

Ohio Corn

h/aug call

61018

22956

0.3762

1.2585

0.2322

Synthetic II

Iowa Corn

h/aug call

61043

38334

0.6280

1.2077

0.2504

Synthetic III

Ohio Corn

h/sept call

59713

24507

0.4104

1.0318

0.3225

Synthetic III

Iowa Corn

h/sept call

59643

39022

0.6543

1.0013

0.3365

 

 

 

 

 

 

 

 

Synthetic put

 

 

 

 

 

 

 

Synthetic IV

Ohio Corn

h/July call

63443

26961

0.4250

1.5736

0.1416

Synthetic IV

Iowa Corn

h/July call

63966

44335

0.6931

1.5237

0.1535

Synthetic V

Ohio Corn

h/aug call

59704

24078

0.4033

1.0187

0.3285

Synthetic V

Iowa Corn

h/aug call

59662

42038

0.7046

0.9702

0.3511

Synthetic VI

Ohio Corn

h/sept call

58240

25196

0.4326

0.7772

0.4521

Synthetic VI

Iowa Corn

h/sept call

58077

42252

0.7275

0.7503

0.4675

 

 

 

 

 

 

 

Naive Cash Marketing Sale

Ohio Corn

18 yr. Period

55125

23602

0.4282

 

 

 

Iowa Corn

18 yr. Period

49217

39577

0.8041

 

 

 

Ohio Corn

12 yr. Period

53941

24291

0.4503

 

 

 

Iowa Corn

12 yr. Period

53251

35378

0.6644