“…Two important methods to test the theory of storage are found in the literature: the direct method (Anand, 1999;Brennan, 1958;Cho & McDougall, 1990;Geman & Nguyen, 2005;Geman & Smith, 2013;Gray & Peck, 1981;Heaney, 1998;Kucher & Kurov, 2014;Lien, 1987;Omura et al, 2015;Telser, 1958;Thompson, 1986;Working, 1949) and the indirect method (Ahmadi et al, 2020;Brooks et al, 2013;Fama & French, 1987, 1988Serletis & Hulleman, 1994;Serletis & Shahmoradi, 2006;Stronzik et al, 2008). In the direct testing method, convenience yield is calculated by the spot and futures prices and modelled with the real inventory data of the commodity.…”