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Please use this identifier to cite or link to this item: http://purl.umn.edu/90553

Title: Hedging Break-Even Biodiesel Production Costs Using Soybean Oil Futures
Authors: Graf, Johannes
McKenzie, Andrew M.
Popp, Michael P.
Keywords: biodiesel
hedging
poultry fat
soybean oil
Issue Date: 2008
Abstract: The effectiveness of hedging volatile input prices for biodiesel producers is examined over one- to eight-week time horizons. Results reveal that hedging break-even soybean costs with soybean oil futures offers significant reductions in input price risk. The degree of risk reduction is dependent upon type of hedge, na├»ve or risk-minimizing, and upon time horizon. In contrast, cross-hedging break-even poultry fat costs with soybean oil futures failed to reduce input price risk.
URI: http://purl.umn.edu/90553
Identifiers: 0738-8950
Institution/Association: Journal of Agribusiness>Volume 26, Number 1, Spring 2008
Total Pages: 15
From Page: 61
To Page: 75
Collections:Volume 26, Number 1, Spring 2008

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