YouTube T3-16: Cost of Carry: convenience yield

[Nicole Seaman]

The convenience yield an intangible benefit of commodity ownership. It is derived from (explained by) the observed forward/futures price.

David's XLS is here: https://www.dropbox.com/s/orv4ljunme62kgl/062018-coc-convenience1.xlsx

 

[calton]

What is the market convention for storage cost. Is there a widely used reference rate for storage cost based on international institutions' estimates?