CROSS-HEDGING COTTONSEED MEAL

This study examines the feasibility of cross-hedging cottonseed meal with soybean meal futures. The simple linear regression of cottonseed meal cash prices on soybean meal futures provides a direct price movement relationship. Using the estimated hedge-ratios, the net realized prices are calculated for seven different cash markets. The net realized prices exhibit risk efficiency superior to cash pricing. The empirical analyses suggest that soybean meal futures can be used as a potential cross-hedging vehicle for cottonseed meal.


Subject(s):
Issue Date:
2000
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/21769
PURL Identifier:
http://purl.umn.edu/21769
Total Pages:
16
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2020-10-28

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