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A Study Of The Economic Functions Of The Maine Potato Futures Market

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  • Sooy, Jeff
  • Branch, Ben

Abstract

In an update and extension of prior work this study found that the potato futures markets continued to provide very unreliable forecasts of subsequent spot prices. On the other hand and contrary to some past studies an extensive study here failed to turn up any convincing evidence of a cobweb pricing relationship. Moreover the increasing volatility of potato futures prices in the more recent time period raises questions regarding their value as hedging vehicles. Finally it is argued that the market's efficiency might be improved by expanding the current Maine potato contract to permit delivery of round white potatoes grown outside Maine.

Suggested Citation

  • Sooy, Jeff & Branch, Ben, 1980. "A Study Of The Economic Functions Of The Maine Potato Futures Market," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 9(01), pages 1-11, April.
    • Handle: RePEc:ags:nareaj:159443
    DOI: 10.22004/ag.econ.159443
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    References listed on IDEAS

    as
    1. Gray, Roger W., 1960. "The Characteristic Bias in Some Thin Futures Markets," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 1(3), pages 1-17.
    2. Young, Ralph & Tomek, William G., 1978. "A Comparison Of Marketing Strategies For Potatoes In Upstate New York," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 7(2), pages 1-6, October.
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    7. Gray, Roger W., 1972. "The Futures Market for Maine Potatoes: An Appraisal," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 11(3), pages 1-29.
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