Commodity futures markets: are they an effective price risk management tool for the European wheat supply chain ?
AbstractThe instability of commodity prices and the hypothesis that speculative behaviour was one of its causes has brought renewed interest in futures markets. In this paper, we analyse the European wheat futures markets (feed and milling) and the CBOT’s wheat contract as a comparison, to study their efficiency, hedging effectiveness and whether they were affected during the period of high instability after 2007. Implicitly this is a test of whether the increasing presence of speculation in futures markets have made them divorced from the physical markets, and therefore, not useful for commercial entities aiming to exchange price risk for basis risk.
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Bibliographic InfoPaper provided by Italian Association of Agricultural and Applied Economics (AIEAA) in its series 2013 Second Congress, June 6-7, 2013, Parma, Italy with number 149773.
Date of creation: Jun 2013
Date of revision:
Futures prices; commodity prices; volatility; wheat; Demand and Price Analysis; Farm Management; International Relations/Trade; G1; G130;
Other versions of this item:
- Revoredo-Giha, Cesar & Zuppiroli, Marco, 0. "Commodity futures markets: are they an effective price risk management tool for the European wheat supply chain?," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 3.
- G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
- Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
- G01 - Financial Economics - - General - - - Financial Crises
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-06-16 (Agricultural Economics)
- NEP-ALL-2013-06-16 (All new papers)
- NEP-RMG-2013-06-16 (Risk Management)
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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