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Treatment of Hedging in Commodity Market Regulation

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  • Paul, Allen B.

Abstract

The study analyzes the reasons for defining bona fide hedging for regulatory purposes, deficiencies of the current legal definitions, means for sidestepping the need to define hedging, how these means might work in practice, some problems posed thereby, and possible theoretical and practical bases for improved definitions.

Suggested Citation

  • Paul, Allen B., 1976. "Treatment of Hedging in Commodity Market Regulation," Technical Bulletins 158109, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerstb:158109
    DOI: 10.22004/ag.econ.158109
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    File URL: https://ageconsearch.umn.edu/record/158109/files/tb1538.pdf
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    References listed on IDEAS

    as
    1. Mark J. Powers, 1967. "Effects of Contract Provisions on the Success of a Futures Contract," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(4), pages 833-843.
    2. Leland L. Johnson, 1960. "The Theory of Hedging and Speculation in Commodity Futures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 27(3), pages 139-151.
    3. Mann, Jitendar S. & Heifner, Richard G., 1976. "The Distribution of Shortrun Commodity Price Movements," Technical Bulletins 158107, United States Department of Agriculture, Economic Research Service.
    4. Paul, Allen B. & Wesson, William T., 1967. "Pricing Feedlot Services Through Cattle Futures," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 19(2), pages 1-13, April.
    5. Sandor, Richard L, 1973. "Innovation by an Exchange: A Case Study of the Development of the Plywood Futures Contract," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 119-136, April.
    6. Ronald W. Ward & Lehman B. Fletcher, 1971. "From Hedging to Pure Speculation: A Micro Model of Optimal Futures and Cash Market Positions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 71-78.
    7. Heifner, Richard G., 1973. "Hedging Potential in Grain Storage and Livestock Feeding," Agricultural Economic Reports 307482, United States Department of Agriculture, Economic Research Service.
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    Citations

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    Cited by:

    1. Strohmaier, Jay S. & Dahl, Reynold P., 1984. "Analyzing Changing Price Relationships Between Wheat Futures Markets," Staff Papers 14090, University of Minnesota, Department of Applied Economics.
    2. Baines, Joseph, 2017. "Accumulating through Food Crisis? Farmers, Commodity Traders and the Distributional Politics of Financialization," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(3), pages 497-537.
    3. Paul, Allen B., 1989. "Research On Futures Markets: Discussion," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-3, July.
    4. Irwin, Scott H., 2020. "Trilogy for troubleshooting convergence: Manipulation, structural imbalance, and storage rates," Journal of Commodity Markets, Elsevier, vol. 17(C).
    5. Streeter, Deborah H. & Tomek, William G., 1989. "Models of the Variability of Futures Prices: Specification and Evaluation," Staff Papers 197571, Cornell University, Department of Applied Economics and Management.
    6. Tomek, William G., 1993. "Dynamics of Price Changes: Implications for Agricultural Futures Markets," Staff Papers 121339, Cornell University, Department of Applied Economics and Management.
    7. Taylor, Patricia D. & Tomek, William G., 1984. "Forecasting the Basis for Corn in Western New York," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 13(1), pages 1-6, April.
    8. Taylor, Patricia D. & Tomek, William G., 1984. "Forecasting the Basis for Corn in Western New York," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-6, April.
    9. Irwin, Scott H. & Garcia, Philip & Good, Darrel L. & Kunda, Eugene L., 2009. "Poor Convergence Performance of CBOT Corn, Soybean and Wheat Futures Contracts: Causes and Solutions," Marketing and Outlook Research Reports 183475, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    10. Hudson, Michael A. & Hieronymus, Thomas A. & Koontz, Stephen R., 1986. "Deliveries On The Cme Live Cattle Contract: An Economic Assessment," Illinois Agricultural Economics Staff Paper 244652, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    11. Seevers, Gary L., 1977. "Government Regulation And The Futures Market," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 1(1), pages 1-7, June.

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