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)
 4/3/96 3.1275 34.5 107.90 0 0 0 0
11/15/1996 2.65 47.25 125.21 0.02 0.13 0.057 9.88
02/05/1997 2.64 34.5 91.08 0.08 0.15 0.057 9.90
04/10/1997 2.90 38.75 112.38 0.12 0.20 0.057 14.57
Total 436.57 34.35
Avg. cash price ($/bu.) 2.82 Avg. carrying charge ($/bu.) 0.22
Net cash price ($/bu) 2.59
               
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)
05/15/1996 3.5825 34.5 123.60 0.01 0.35
08/01/1996 3.25 41.4 134.55 0.01 0.41
08/15/1996 3.4925 -41.4 -144.59 0 0.00
11/27/1996 2.72 -34.5 -93.84 0 0.00
11/27/1996 2.735 34.5 94.36 0.01 0.35
02/05/1997 2.725 -34.5 -94.01 0 0.00
02/10/1997 0.0675 -38.75 -2.62 0.006 0.23
04/15/1997 3.02 -23.8 -71.88 0.01 0.24
04/18/1997 0 38.75 0.00 0 0.00
05/15/1997 2.83 23.8 67.35 0 0.00
Total 12.92 1.57
Avg. futures gain ($/bu.) 0.08 Avg. brokerage cost ($/bu.) 0.01
Average net price per bushel 2.67