Prehn, Sören; Glauben, Thomas; Loy, Jens-Peter - 2021
First things first-contrary to popular opinion, the main reason farmers and grain traders use futures markets is not to … little use to farmers and grain traders and has the potential to yield negative economic consequences. Minimum variance … hedging (MVH) leads to over-hedging on inverse markets and under-hedging on carry markets. In both cases, the costs of storage …