CROSS-HEDGING COTTONSEED MEAL

Shaikh Mahfuzur Rahman, Steven C. Turner and Ecio Costa

Journal of Agribusiness, 2001, vol. 19, issue 2, 9

Abstract: This study examines the feasibility of cross-hedging cottonseed meal with soybean meal futures. A 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 are higher than cash prices in three of the four years evaluated. The empirical analyses suggest soybean meal futures can be used as a potential cross-hedging vehicle for cash cottonseed meal.

Keywords: Marketing (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (4)

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Working Paper: CROSS-HEDGING COTTONSEED MEAL (2000)
Working Paper: CROSS-HEDGING COTTONSEED MEAL (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:14691

DOI: 10.22004/ag.econ.14691

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