Riley, John Michael; Anderson, John D. - Department of Agricultural and Consumer Economics, … - 2009
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 …