A major part of Australian cattle trade takes place in markets for animals which do not meet the specifications for the trade steer contract. However, producers, processors and marketers of cattle which are nondeliverable on the futures market may be able to make use of the futures market through the process of cross hedging. The aim is to determine whether or not various types of Australian cattle could, in fact, have been cross hedged successfully in the past using the existing Australian cattle futures contracts. Cross hedging is evaluated over time, space and product form to assess the potential for cross hedging that has existed since the Sydney Futures Exchange's cattle contract was first offered for trading. No attempt will be made to identify 'optimal' cross-hedging strategies. The specifications of the trade steer contract have changed over time. When first introduced in July 1975 the contract was labelled 'futures type steers'. Prior to 1 July 1977 the contract called for carcass deliveries. Since that date, live deliveries have been made, hence the references to 'live cattle' contracts in the literature. Due to this change in specifications, data from live delivery markets only were used in this analysis.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Did you know? Citation analysis on IDEAS includes online papers that are freely accessible and whose text could be automatically analyzed, currently about 210000 papers.