Commodity futures and options
In: Handbook of Agricultural Economics
AbstractOrganized exchanges have evolved methods for enforcing contracts, which allow the contracts themselves to be traded at low cost. Theorists have modeled futures contracts as tools for risk management, despite an extensive empirical literature that does not support predictions about bias in prices or speculators' behavior. Another perspective models commercial firms as using futures contracts to arbitrage, to minimize transaction costs, to substitute temporarily for merchandising contracts. Because commercial firms tie their processing and storage decisions to the constellation of futures prices, futures prices have major allocative effects, even if their forecasting power is inevitably poor.
Download InfoIf 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
This chapter was published in:
This item is provided by Elsevier in its series Handbook of Agricultural Economics with number 2-13.
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description
Find related papers by JEL classification:
- Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Franken, Jason R.V. & Garcia, Philip & Irwin, Scott H., 2009. "Is Storage at a Loss Merely an Illusion of Spatial Aggregation?," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 27.
- Sergio H. Lence, 2009.
"Do Futures Benefit Farmers?,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 91(1), pages 154-167.
- Rausser, Gordon C. & Balson, William & Stevens, Reid, 2009.
"Centralized clearing for over-the-counter derivatives,"
CUDARE Working Paper Series
1091, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Gordon Rausser & William Balson & Reid Stevens, 2010. "Centralized clearing for over-the-counter derivatives," Journal of Financial Economic Policy, Emerald Group Publishing, vol. 2(4), pages 346-359, December.
- Rausser, Gordon C. & Balson, William & Stevens, Reid, 2009. "Centralized Clearing for Over-the-Counter Derivatives," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt494976mk, Department of Agricultural & Resource Economics, UC Berkeley.
- Ramaswami, Bharat & Singh, Jatinder, 2007.
"Underdeveloped Spot Markets and Futures Trading: The Soya Oil Exchange in India,"
106th Seminar, October 25-27, 2007, Montpellier, France
7919, European Association of Agricultural Economists.
- Bharat Ramaswami & Jatinder Bir Singh, 2006. "Underdeveloped spot markets and futures trading: The Soya Oil exchange in India," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 06-03, Indian Statistical Institute, New Delhi, India.
- Modjtahedi, Bagher & Movassagh, Nahid, 2005. "Natural-gas futures: Bias, predictive performance, and the theory of storage," Energy Economics, Elsevier, vol. 27(4), pages 617-637, July.
- Morales, C. & Garrido, Alberto & Palinkas, Peter & Szekely, Csaba, 2008. "Risks Perceptions and Risk Management Instruments in the European Union: do farmers have a clear idea of what they need?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43956, European Association of Agricultural Economists.
- Isengildina-Massa, Olga & Irwin, Scott H. & Good, Darrel L. & Gomez, Jennifer K., 2008. "The Impact of Situation and Outlook Information in Corn and Soybean Futures Markets: Evidence from WASDE Reports," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April.
- Hobæk Haff, Ingrid & Lindqvist, Ola & Løland, Anders, 2008. "Risk premium in the UK natural gas forward market," Energy Economics, Elsevier, vol. 30(5), pages 2420-2440, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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.