Analysis Of Expected Price Dynamics Between Fluid Milk Futures Contracts And Cash Prices For Fluid Milk
The objective of this study is to provide an empirical evaluation of the expected relationship between cash and futures prices for fluid milk. This is done using historic cash prices from 1988 to 1995, and making inferences about how futures prices would have behaved if they had traded during this sample period. Futures prices are simulated over the sample period based on two assumptions about futures market behavior for fluid milk. The first is that the futures market will essentially price the Basic Formula Price (BFP). The BFP is an estimate of the previous month's pay price for Grade B manufacturing milk in Minnesota and Wisconsin adjusted for contemporaneous changes in the prices of manufactured milk products. It establishes the federal milk marketing order minimum Grade A pay price for Class III milk used to make cheese, and is the mover of both the minimum Class II price for milk used in soft manufacturing products and the minimum Class I price for beverage milk (Jesse).
|Date of creation:||Jan 1997|
|Contact details of provider:|| Postal: University of Wisconsin, Dept. of Agricultural and Applied Economics, 427 Lorch Street, Madison, WI 53706|
Web page: http://www.aae.wisc.edu/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:wop:wiaesp:407. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.