MANAGING OVERNIGHT CORN PRICE RISKS: E*HEDGING VERSUS TOKYO

This study investigates whether U.S. corn merchants can effectively manage the overnight price risk of cash corn purchased after the Chicago Board of Trade closes at 1:15 p.m. on either the electronic Project A market or in the corn contract traded on the Tokyo Grain Exchange. While neither market provides a very effective alternative using traditional measures of analysis, e*hedging on Project A is more effective than hedging in Tokyo. Both could be very effective for those merchants in the market every day. However, trading of corn futures contracts on Project A remains thin and likely illiquid, limiting its usefulness.


Subject(s):
Issue Date:
2000
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/14718
PURL Identifier:
http://purl.umn.edu/14718
Published in:
Journal of Agribusiness, Volume 18, Number 3
Page range:
275-288
Total Pages:
14




 Record created 2017-04-01, last modified 2018-01-22

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