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The commodity bull cycle of 2006-2008 and subsequent dramatic price decline have been a source of hardship for traditional commodity market participants such as producers and merchant/shippers. The usefulness of futures markets has been called into question, especially given that some market...
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Futures prices when combined with a basis forecast provide a reliable way to forecast cash prices. The most popular method of forecasting basis is historical moving averages. Given the recent failure of longer moving averages proposed by previous studies, this research reassesses past...
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production and livestock feed usage, elevator storage capacity, access to railroad grain handling facilities, and to a limited … local wheat production, elevator storage capacity, the number of competitors in local markets, and by location relative to …
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Hedging effectiveness is the proportion of price risk removed through hedging. Empirical hedging studies typically … estimate a set of risk minimizing hedge ratios, estimate the hedging effectiveness statistic, apply the estimated hedge ratios … to a second group of data, and examine the robustness of the hedging strategy by comparing the hedging effectiveness for …
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Recent spikes in commodity prices have led to higher margin amounts and option premiums. For the most part, producers … the use of these markets. This study determines the relative costs of hedging with futures and options and compares these … with the costs of other variable inputs. We find that with the exception of hedging corn with both tools and soybeans with …
Persistent link: https://www.econbiz.de/10009368371