✦ LIBER ✦

The hedging performance in new agricultural futures markets: A note

✍ Scribed by Joost M. E. Pennings; Matthew T. G. Meulenberg

Publisher: John Wiley and Sons
Year: 1997
Tongue: English
Weight: 74 KB
Volume: 13
Category: Article
ISSN: 0742-4477
DOI: 10.1002/(sici)1520-6297(199705/06)13:3<295::aid-agr4>3.0.co;2-w

No coin nor oath required. For personal study only.

✦ Synopsis

Agribusiness companies and farmers must cope with the risk of price changes when buying or selling agricultural commodities. Hedging price risk with agricultural commodity futures offers a way of minimizing this risk. Information is needed on the hedging effectiveness of these futures. Because many new agricultural futures markets, especially those in Europe, are thin markets, hedgers face liquidity risks which have to be taken into account when evaluating hedging effectiveness.

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