Date of Defense





The purpose of this paper is threefold: l) to examine the principles of hedging and "basis pricing, in relation to 2) the function of the Chicago Board of Trade, and 3) to investigate the use of these market strategies in local grain elevator "business. Using the hypothesis, "an increase in the size of the grain elevators' volume intake necessitates a more complex grain marketing strategy," a survey of southwest Michigan grain elevators was conducted in 1982. The survey included questions regarding present marketing strategies employed at the elevator and questions for quantitative analysis based on the firm size. A copy of the instrument used can be found in Appendix A. The results show that as the elevators increase in size, management techniques increase in complexity including hedging and basis pricing as a successful marketing program.

Access Setting

Honors Thesis-Campus Only