Advanced Search
MyIDEAS: Login to save this article or follow this journal

Futures Basis of RSS3 in the Agricultural Futures Exchange of Thailand

Contents:

Author Info

  • Tarntip Boonkomrat

    ()
    (Thanachart Bank, Pathum Wan, Bangkok, Thailand)

  • Kanokwan Chancharoenchai

    ()
    (Faculty of Economics, Kasetsart University, Bangkok, Thailand)

Registered author(s):

    Abstract

    Ribbed smoked rubber sheet no.3 (RSS3) is one of the agricultural commodities in the Agricultural Futures Exchange of Thailand (AFET). Recently, its futures basis has shown volatile behavior. This could reflect its inefficiency as a hedging tool and the inefficiency in AFET itself. This research examines the predictive power of some economic factors. The monthly data during June 2004 to October 2008 were used in the multiple regression analysis. The findings give evidence of statistically significant explanatory powers of the market and macroeconomic information in estimating the futures basis. The AFET could thus be categorized as semi-strong efficiency form of price. The efficiency could be increased by the effective dissemination of knowledge and information to investors to support their investment decision. In addition, the agricultural price risk should be managed through market-based tools.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.journal.eco.ku.ac.th/upload/document/thai/20120244122944.pdf
    Download Restriction: no

    File URL: http://www.journal.eco.ku.ac.th/upload/document/eng/20120202123002.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Kasetsart University, Faculty of Economics, Center for Applied Economic Research in its journal Applied Economics Journal.

    Volume (Year): 18 (2011)
    Issue (Month): 1 (June)
    Pages: 15-30

    as in new window
    Handle: RePEc:aej:apecjn:v:18:y:2011:i:1:p:15-30

    Contact details of provider:
    Phone: (662) 579-1544
    Fax: (662) 579-957
    Email:
    Web page: http://journal.eco.ku.ac.th/
    More information through EDIRC

    Related research

    Keywords: futures basis; RSS3; AFET;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:aej:apecjn:v:18:y:2011:i:1:p:15-30. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chatrat Hemmawat).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.