risks with and without hedging were compared using the analogy of the value-at-risk measure (VaR), i.e., a quantile …, hedging reduced VaR to a variable degree under both current and future climatic conditions, with a considerable basis risk due … to spatial heterogeneity of precipitation. The results also showed that hedging might provide a valid risk transfer since …

with and without hedging werecompared using the analogy of the value-at-risk measure (VaR), i.e., a quantile … weather variables into the stochastic distributions for grainyield and economic returns. Depending on location, hedging … tospatial heterogeneity of precipitation. The results also showed that hedging might provide avalid risk transfer since loading …

A theoretical optimal hedging model is developed to determine potential demand from Australianfarmers for a hedging … many hurdles toimplementing agricultural weather derivative contracts in Australia. The optimal hedging ratio isfound to be …

Recently developed ethanol futures contracts now allow direct-hedging by ethanol producers. This study examines the … effectiveness of one-through eight-week hedges between 2005 and 2008. Our findings show (a) ethanol inventory hedging effectiveness … is significant for two-week and longer hedges, and increases with the hedging horizon; (b) ethanol futures are …