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Cotton Price Risk Management across Different Countries

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  • Wang, Qizhi
  • Chidmi, Benaissa

Abstract

Cotton price relationships between major cotton producers and New York cotton December future price are investigated by the regression model, the VAR model and the error-correction model, the error-correction model generates the hedge ratios that display the largest value in size in most of the cases except Australia. The results indicate that the price relationships between US, China and Australia and New York Future market prices are much higher than the relationships between other cotton producers and New York Future market prices.

Suggested Citation

  • Wang, Qizhi & Chidmi, Benaissa, 2009. "Cotton Price Risk Management across Different Countries," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46762, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeana:46762
    DOI: 10.22004/ag.econ.46762
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    References listed on IDEAS

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    Agribusiness; Agricultural Finance;

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