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Simple And Multiple Cross-Hedging Of Rice Bran

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  • Elam, Emmett W.
  • Miller, Stephen E.
  • Holder, Shelby H.

Abstract

Feasibility of forward pricing sales of rice bran via cross-hedging was investigated. Corn, oats, wheat, and soybean meal futures were considered as simple and multiple cross-hedging media. Simulation results indicated that simple cross-hedging using corn futures would be most effective in reducing price risks.

Suggested Citation

  • Elam, Emmett W. & Miller, Stephen E. & Holder, Shelby H., 1986. "Simple And Multiple Cross-Hedging Of Rice Bran," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(01), pages 1-6, July.
    • Handle: RePEc:ags:sojoae:29451
    DOI: 10.22004/ag.econ.29451
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    References listed on IDEAS

    as
    1. Miller, Stephen E., 1980. "Beef Price Hedging Opportunities For Food Service Institutions," Journal of Food Distribution Research, Food Distribution Research Society, vol. 11(3), pages 1-6, September.
    2. Anderson, Ronald W & Danthine, Jean-Pierre, 1981. "Cross Hedging," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1182-1196, December.
    3. Anne E. Peck, 1975. "Hedging and Income Stability: Concepts, Implications, and an Example," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 410-419.
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    Cited by:

    1. Regmund, Wes & Robinson, John & Anderson, David, "undated". "Higher and More Stable Returns From Cottonseed," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252813, Southern Agricultural Economics Association.
    2. Elam, Emmett W. & Davis, James, 1990. "Hedging Risk For Feeder Cattle With A Traditional Hedge Compared To A Ratio Hedge," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(2), pages 1-8, December.

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