CROSS-HEDGING COTTONSEED MEAL

Shaikh Mahfuzur Rahman, Steven C. Turner and Ecio Costa

No 21769, 2000 Annual meeting, July 30-August 2, Tampa, FL from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This study examines the feasibility of cross-hedging cottonseed meal with soybean meal futures. The simple linear regression of cottonseed meal cash prices on soybean meal futures provides a direct price movement relationship. Using the estimated hedge-ratios, the net realized prices are calculated for seven different cash markets. The net realized prices exhibit risk efficiency superior to cash pricing. The empirical analyses suggest that soybean meal futures can be used as a potential cross-hedging vehicle for cottonseed meal.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 16
Date: 2000
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Journal Article: CROSS-HEDGING COTTONSEED MEAL (2001)
Working Paper: CROSS-HEDGING COTTONSEED MEAL (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea00:21769

DOI: 10.22004/ag.econ.21769

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