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| If May corn is 4.22 and July is 4.34 that would mean that July is 12 cents more than May so there would be 12 cents of carry from May to July. If you are hedged in May you could buy back the May contract at 4.22 and sell a July contract for 4.34 gaining 12 cents.
The last few years the July was probably a little lower than the May price so that would be what is called an inverted market.
Right now there is 12 cents of carry to July and 21 cents of carry to September. | |
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what is carry
