Producer-Level Hedging Effectiveness of Class III Milk Futures

Mailbox milk prices from a representative dairy operation in Illinois are used to gauge the farm-level hedging effectiveness of Class III milk futures. The results indicate a hedge ratio of 0.85 can reduce price risk by over 90%. The importance of seasonal basis components is highlighted.


Subject(s):
Issue Date:
2007
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/34983
Total Pages:
13
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2018-01-09

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