CROSS-HEDGING COTTONSEED MEAL

This study examines the feasibility of cross-hedging cottonseed meal with soybean meal futures. A 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 are higher than cash prices in three of the four years evaluated. The empirical analyses suggest soybean meal futures can be used as a potential cross-hedging vehicle for cash cottonseed meal.


Subject(s):
Issue Date:
2001
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/14691
Published in:
Journal of Agribusiness, Volume 19, Number 2
Page range:
163-171
Total Pages:
9




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

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