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Marketing Contracts, Overconfidence, and Timing in the Canadian Wheat Market

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  • Mattos, Fabio
  • Fryza, Stefanie A.

Abstract

This paper investigates factors that impact marketing performance in the Canadian wheat market. Using data provided by the Canadian Wheat Board (CWB) for six crop years, results indicate that producers were not able to profitably use all marketing contracts offered by the CWB, earlier pricing tended to generate better performance, there was a negative relationship between activeness and performance (suggesting overconfidence in marketing skills), and performance was generally worse in volatile crop years. Further analysis reveals some of these findings differ when outperforming and underperforming producers are investigated separately, particularly with respect to activeness and volatility.

Suggested Citation

  • Mattos, Fabio & Fryza, Stefanie A., 2012. "Marketing Contracts, Overconfidence, and Timing in the Canadian Wheat Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), pages 1-16.
    • Handle: RePEc:ags:jlaare:142356
    DOI: 10.22004/ag.econ.142356
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    References listed on IDEAS

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    1. Dietz, Sarah N. & Aulerich, Nicole M. & Irwin, Scott H. & Good, Darrel L., 2009. "The Marketing Performance of Illinois and Kansas Wheat Farmers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(1), pages 177-191, April.
    2. Kim B. Anderson & B. Wade Brorsen, 2005. "Marketing Performance of Oklahoma Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1265-1270.
    3. Brorsen, B. Wade & Anderson, Kim B., 2001. "Implications of Behavioral Finance for Farmer Marketing Strategy Recommendation," 2001 Conference, April 23-24, 2001, St. Louis, Missouri 18952, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    4. Silvina M. Cabrini & Scott H. Irwin & Darrel L. Good, 2007. "Style and Performance of Agricultural Market Advisory Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 607-623.
    5. Schroeder, Ted C. & Parcell, Joseph L. & Kastens, Terry L. & Dhuyvetter, Kevin C., 1998. "Perceptions Of Marketing Strategies: Producers Versus Extension Economists," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-15, July.
    6. Lewis T. Cunningham & B. Wade Brorsen & Kim B. Anderson, 2007. "Cash Marketing Styles and Performance Persistence," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 624-636.
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    Cited by:

    1. Carrer, Marcelo José & Silveira, Rodrigo Lanna F. & Meirelles De Souza Filho, Hildo, 2017. "Citrus Producers' Choice of Price Risk Management Tools," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258352, Agricultural and Applied Economics Association.

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