@article{Revoredo-Giha:142546,
      recid = {142546},
      author = {Revoredo-Giha, Cesar and Zuppiroli, Marco},
      title = {Effectiveness of hedging within the high price volatility  context},
      address = {2012-09},
      number = {1336-2016-103936},
      series = {WP},
      pages = {25},
      year = {2012},
      abstract = {The instability of prices and the hypothesis that  speculative behaviour was one of its sources has brought  renewed interest in the futures markets. In this paper, we  concentrate on the European wheat futures markets (feed and  milling) and the CBOT’s wheat contract as a comparison. The  purpose of the paper is to study whether those markets  still allow substitution price risk for basis risk. This  implicitly is a test of whether the increasing presence of  speculation in futures market have made them divorced from  the physical markets, and therefore, not useful for  commercial entities. We study two aspects: efficiency and  hedging effectiveness and our results indicate that there  are still a good connection between physical and futures  markets, and therefore, hedging can still play an important  role protecting commodity handlers against price  volatility.},
      url = {http://ageconsearch.umn.edu/record/142546},
      doi = {https://doi.org/10.22004/ag.econ.142546},
}