Cross-Hedging Cottonseed Meal
AbstractThis 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.
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Bibliographic InfoArticle provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.
Volume (Year): 19 (2001)
Issue (Month): 2 ()
cottonseed meal; cross-hedging; hedging ratios; soybean meal; Marketing;
Other versions of this item:
- Rahman, Shaikh Mahfuzur & Turner, Steven C. & Costa, Ecio de Farias, 2000. "Cross-Hedging Cottonseed Meal," 2000 Annual meeting, July 30-August 2, Tampa, FL 21769, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Rahman, Shaikh Mahfuzur & Turner, Steven C. & Costa, Ecio de Farias, 2000. "Cross-Hedging Cottonseed Meal," Faculty Series 16707, University of Georgia, Department of Agricultural and Applied Economics.
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.:
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