A Production Cross-Hedge for Long and Medium Grain Rough Rice Using Soft Red Winter Wheat Futures

Routine preharvest cross-hedging of rice utilizing futures prices for wheat is examined. Average net prices from cross-hedging generally exceeded harvest pricing. Compared to harvest pricing, cross-hedging price distributions exhibited less variability. Results indicated that an April cross-hedge was the preferred marketing strategy under the third-degree stochastic dominance criterion.


Issue Date:
1986-07
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/278404
Language:
English
Total Pages:
15




 Record created 2018-10-17, last modified 2020-10-28

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)