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Working, Holbrook (1948). “Theory of the Inverse Carrying Charge in Futures Markets” Journal of Farm Economics, 30(1), pp 1-28.Holbrook Working’s (1948) “Theory of the Inverse Carrying Charge in Futures Markets” is one of the classic “must read” articles on commodity pricing. Excerpt: “Prevalence of the idea that expectations of price change should be reflected in differences between spot and futures prices is significant principally as evidence of the extent to which the actual economic functions of futures markets are misunderstood, even by some people who have much practical knowledge of the markets. There is a good deal of excuse for such misunderstanding because the facts are difficult to express without ambiguity, and can be understood only if clear distinction is drawn between expectations regarding future supply or demand developments. There is, moreover, a grain of truth in the idea that expectations regarding future supply and demand may affect spot-future price spreads; but any supposed effect that cannot be explained in terms of the concept of price of storage deserves to be met with suspicion.”
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![Technical Datasheet - Veracious Inc · Inverse Characteristics Curve [Over Current IDMT]: Very Inverse Long Inverse Standard Inverse Extremely Inverse α C 0.02 1 2 1 0.14 13.5 80](https://img.pdfslide.us/doc/110x75/60dab49f5dabad678957ab65/technical-datasheet-veracious-inc-inverse-characteristics-curve-over-current.jpg)
