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Title: Analysis of Expected Price Dynamics Between Fluid Milk Futures Contracts and Cash Prices for Fluid Milk
Authors: Fortenbery, T. Randall
Cropp, Robert A.
Zapata, Hector O.
Keywords: Fluid milk futures
Dairy markets
Issue Date: 1997
Abstract: Future contracts for fluid milk began trading in late 1995 and early 1996. This paper investigates the potential use of fluid milk futures contracts as hedge vehicles for dairy producers in the Upper Midwest and California markets. This is done by developing simulated futures prices for the period 1988 to 1995. The simulated futures prices are used to estimate basis relationships between cash and futures prices for the markets considered. Results suggest that the fluid milk futures contracts could be used to reduce market price risk for producers in the Upper Midwest. Results were less conclusive for California producers.
Identifiers: 0738-8950
Institution/Association: Journal of Agribusiness>Volume 15, Number 2, Fall 1997
Total Pages: 20
From Page: 215
To Page: 234
Collections:Volume 15, Number 2, Fall 1997

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