[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/iamopb/200131.html
   My bibliography  Save this paper

Options trading in agricultural futures markets: A reasonable instrument of risk hedging, or a driver of agricultural price volatility?

Author

Listed:
  • Glauben, Thomas
  • Prehn, Sören
  • Dannemann, Tebbe
  • Brümmer, Bernhard
  • Loy, Jens-Peter
Abstract
Options trading is increasingly important in more volatile agricultural markets. Options allow for unilateral hedging of price risks, e. g. against falling prices only, and are an indispensable risk management instrument for farmers and grain dealers. Concerns that soaring options trading could spark incremental volatility of international agricultural commodity prices have not been empirically verified to date. Econometric assessments for the MATIF grain maize market suggest that option trading does not have a volatility increasing effect.

Suggested Citation

  • Glauben, Thomas & Prehn, Sören & Dannemann, Tebbe & Brümmer, Bernhard & Loy, Jens-Peter, 2014. "Options trading in agricultural futures markets: A reasonable instrument of risk hedging, or a driver of agricultural price volatility?," IAMO Policy Briefs 200131, Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:ags:iamopb:200131
    DOI: 10.22004/ag.econ.200131
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/200131/files/IAMOPolicyBrief20_en.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.200131?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Svanidze, Miranda & Götz, Linde, 2019. "Determinants of spatial market efficiency of grain markets in Russia," Food Policy, Elsevier, vol. 89(C).

    More about this item

    Keywords

    Agricultural Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iamopb:200131. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iamoode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.