Cross-Hedging Fishmeal: Exploring Corn and Soybean Meal Futures Contracts
AbstractDuring 2006 the fishmeal price nearly doubled from $500MT to over $900MT. The objective of this research is to determine the optimal cross-hedge ratio between fishmeal and soybean meal and corn, and corresponding hedging weight between corn and soybean. Results indicate all hedging weight should be placed on the corn futures contract. This is an interesting result since prior fishmeal cross-hedging research has not analyzed the corn futures contract as a risk management mechanism.
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Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas with number 6763.
Date of creation: 2008
Date of revision:
Crop Production/Industries; Risk and Uncertainty;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-14 (All new papers)
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.:
- Parcell, Joseph L., 2003. "An Empirical Analysis of the Demand for Wholesale Pork Primals: Seasonality and Structural Change," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
- Sanders, Dwight R. & Manfredo, Mark R., 2004. "Comparing Hedging Effectiveness: An Application of the Encompassing Principle," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
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