MANAGING OVERNIGHT CORN PRICE RISKS: E*HEDGING VERSUS TOKYO

Raymond M. Leuthold and MinKyoung Kim

Journal of Agribusiness, 2000, vol. 18, issue 3, 14

Abstract: This study investigates whether U.S. corn merchants can effectively manage the overnight price risk of cash corn purchased after the Chicago Board of Trade closes at 1:15 p.m. on either the electronic Project A market or in the corn contract traded on the Tokyo Grain Exchange. While neither market provides a very effective alternative using traditional measures of analysis, e*hedging on Project A is more effective than hedging in Tokyo. Both could be very effective for those merchants in the market every day. However, trading of corn futures contracts on Project A remains thin and likely illiquid, limiting its usefulness.

Keywords: Marketing (search for similar items in EconPapers)
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:14718

DOI: 10.22004/ag.econ.14718

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