Table 1.  A Hypothetical Example of Calculating the Net Advisory Price Per Bushel
               
Cash transactions:
(1) (2) =(1)*(2) (3) (4) (5) =(2)*[(3)+(4)+(5)]
Gross Carrying Charges Total
Transaction Amount Transaction Interest Storage Shrink Carrying
Price Sold Revenue Cost Cost Cost Charges
Date ($/bushel) (bpa) ($/acre) ($/bushel) ($/bushel) ($/bushel) ($/acre)
 4/3/95 2.4475 33.75 82.60 0 0 0 0
11/15/1995 3.135 21.75 68.19 0.02 0.13 0.06 4.65
02/05/1996 3.55 33.75 119.81 0.09 0.15 0.06 10.16
04/10/1996 4.405 29.75 131.05 0.14 0.20 0.06 11.78
Total 401.65 26.59
Avg. cash price ($/bu.) 3.38 Avg. carrying charge ($/bu.) 0.22
Net cash price ($/bu) 3.15
               
Futures transactions:
(4) (5) =(4)*(5) (6) =(5)*(6)
Gross Total
Transaction Amount Transaction Brokerage Brokerage
Price Sold Revenue Cost Cost
Date ($/bushel) (bpa) ($/acre) ($/bushel)     ($/acre)
05/15/1995 2.625 33.75 88.59 0.01 0.34
07/20/1995 2.9 40.5 117.45 0.01 0.41
08/15/1995 3.1075 -40.5 -125.85 0 0.00
11/30/1995 3.3075 -33.75 -111.63 0 0.00
11/30/1995 3.3775 33.75 113.99 0.01 0.34
02/05/1996 3.615 -33.75 -122.01 0 0.00
02/09/1996 0.1325 -29.75 -3.94 0.006 0.18
04/15/1996 4.42 -23.8 -105.20 0.01 0.24
04/19/1996 0 29.75 0.00 0 0.00
05/15/1996 4.88 23.8 116.14 0 0.00
Total -32.45 1.50
Avg. futures gain ($/bu.) -0.27 Avg. brokerage cost ($/bu.) 0.01
Average net price per bushel 2.87