ABSTRACT
The focus of the previous chapter was the price of a homogeneous commodity selling in different geographical regions at the same point in time (i.e., spatial price analysis). This chapter begins the analysis of the price of a homogenous commodity with periodic production that is sold at the same location but at different points in time (i.e., intertemporal price analysis). This current analysis examines the determinants of the current price and the set of prices that agents expect to observe in the future given the information that is available at the current point in time. 1 In other words, this analysis is about the intertemporal profile of commodity prices. To keep the analysis focused on storage and spot market trans-actions attention is restricted to commodities that do not trade in a centralized futures market (e.g., potatoes, lentils and apples). Chapter 4 continues the analysis of prices over time by examining the pricing of a storable commodity with periodic production in the presence of a commodity futures market.
