Dahlgran, Roger A. - Department of Agricultural and Consumer Economics, … - 2007
hedging methodology is applied to weekly cash and futures price data from March 23, 2005 through March 7, 2007. Findings … include (1) for two- to eight-week hedging horizons, the ethanol futures contract effectively hedges ethanol inventory price … risk. The effectiveness of the hedge increases with the hedging horizon. Thus, ethanol producers and brokers can use the …