Complements or substitutes? Equivalent futures contract markets—the case of corn and soybean futures on U.S. and Japanese exchanges
✍ Scribed by Mark E. Holder; R. Daniel Pace; Michael J. Tomas III
- Publisher
- John Wiley and Sons
- Year
- 2002
- Tongue
- English
- Weight
- 116 KB
- Volume
- 22
- Category
- Article
- ISSN
- 0270-7314
No coin nor oath required. For personal study only.
✦ Synopsis
Abstract
This article examines the relationship between corn and soybean futures volumes for contracts traded in the
United States and Japan. Because the contract specifications for corn and soybeans futures traded on the Chicago
Board of Trade (CBOT), the Tokyo Grain Exchange (TGE), and the Kanmon Commodity Exchange
(KCE) are highly similar, the existence of interactions might be expected. Previous research has
identified price relationships between these similar contracts. With the advent of agricultural trading on the
CBOT's Project A overnight electronic trading system, an overlap of trading times of the U.S. and Japanese
exchanges for these commodity contracts resulted. An analysis of TGE and KCE corn and soybean futures volumes
indicates that these contracts, rather than acting as substitutes, exhibit a complementary
relationship. © 2002 Wiley Periodicals, Inc. Jrl Fut Mark 22:355–370, 2002