Commodity futures markets: are they an effective price risk management tool for the European wheat supply chain ?

Cesar Revoredo-Giha and M. Zuppiroli

No 149773, 2013 Second Congress, June 6-7, 2013, Parma, Italy from Italian Association of Agricultural and Applied Economics (AIEAA)

Abstract: The instability of commodity prices and the hypothesis that speculative behaviour was one of its causes has brought renewed interest in futures markets. In this paper, we analyse the European wheat futures markets (feed and milling) and the CBOT’s wheat contract as a comparison, to study their efficiency, hedging effectiveness and whether they were affected during the period of high instability after 2007. Implicitly this is a test of whether the increasing presence of speculation in futures markets have made them divorced from the physical markets, and therefore, not useful for commercial entities aiming to exchange price risk for basis risk.

Keywords: Demand and Price Analysis; Farm Management; International Relations/Trade (search for similar items in EconPapers)
Pages: 19
Date: 2013-06
New Economics Papers: this item is included in nep-agr and nep-rmg
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aiea13:149773

DOI: 10.22004/ag.econ.149773

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