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A Producer-Level Cross-Hedge For Rough Rice Using Wheat Futures

Author

Listed:
  • Zacharias, Thomas P.
  • Lange, Mark D.
  • Gleason, William J.
  • Traylor, Harlon D.

Abstract

This study explores the potential of routine preharvest cross-hedging of rough rice using wheat futures contract prices. A numerical simulation approach combined with risk efficiency analysis evaluates a wide rage of cross-hedging alternatives. Results establish that farm-level cross-hedging can be considered a viable marketing alternative.

Suggested Citation

  • Zacharias, Thomas P. & Lange, Mark D. & Gleason, William J. & Traylor, Harlon D., 1987. "A Producer-Level Cross-Hedge For Rough Rice Using Wheat Futures," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(2), pages 1-8, December.
    • Handle: RePEc:ags:sojoae:30201
    DOI: 10.22004/ag.econ.30201
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    References listed on IDEAS

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    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. DeeVon Bailey & James W. Richardson, 1985. "Analysis of Selected Marketing Strategies: A Whole-Farm Simulation Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 813-820.
    3. Anderson, Jock R., 1974. "Risk Efficiency in the Interpretation of Agricultural Production Research," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(03), pages 1-54, September.
    4. Anderson, Ronald W & Danthine, Jean-Pierre, 1981. "Cross Hedging," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1182-1196, December.
    5. Anderson, Jock R. & Dillon, John L. & Hardaker, Brian, 1977. "Agricultural Decision Analysis," Monographs: Applied Economics, AgEcon Search, number 288652, July.
    6. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 44, pages 2343-2378, Elsevier.
    7. Marvin L. Hayenga & Dennis D. DiPietre, 1982. "Cross-Hedging Wholesale Pork Products Using Live Hog Futures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 747-751.
    8. Hayenga, Marvin L. & DiPietre, Dennis D., 1982. "Cross-Hedging Wholesale Pork Products Using Live Hog Futures," Staff General Research Papers Archive 11305, Iowa State University, Department of Economics.
    9. Blake, Martin L. & Catlett, Lowell B., 1984. "Cross Hedging Hay Using Corn Futures: An Empirical Test," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(1), pages 1-8, July.
    10. Rolfo, Jacques, 1980. "Optimal Hedging under Price and Quantity Uncertainty: The Case of a Cocoa Producer," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 100-116, February.
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    Cited by:

    1. Rahman, Shaikh Mahfuzur & Turner, Steven C. & Costa, Ecio de Farias, 2001. "Cross-Hedging Cottonseed Meal," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 19(2), pages 1-9.

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