Why does Colombia lack agricultural commodity futures?

Pablo Moreno-Alemay (pablo.moreno@unisabana.edu.co) and Catherine Pereira-Villa (catherine.pereira@unisabana.edu.co)
Authors registered in the RePEc Author Service: Catherine Pereira Villa

Revista Finanzas y Politica Economica, 2015, vol. 7, issue 2, 325-339

Abstract: This article explores the reasons why futures contracts are not traded as an alternative to price hedging for agricultural goods in Colombia. Based on surveys, interviews and statistical analysis, this study identified that conceptual gaps in contract negotiation, lack of consensus in the agricultural sector regarding the use of financial mechanisms and the sector’s infrequent contact with Colombia’s financial institutions, are the main reasons why a futures contracts market has not emerged.******Este artículo explora los motivos por los que no se negocian contratos de futuros en Colombia como alternativa de cobertura de riesgo de precio para bienes agrícolas. A partir del análisis estadístico de entrevistas y encuestas a operadores del mercado de derivados, se logró identificar que los vacíos conceptuales en la negociación de estos contratos, la desunión de las instituciones y actores del sector, y el relativo aislamiento del sector agrícola de la estructura financiera del país, constituyen los principales motivos por los cuales este mercado no se ha hecho realidad en Colombia.

Keywords: Agricultural commodities; futures market; derivatives; risk hedging (search for similar items in EconPapers)
JEL-codes: G13 G32 Q02 Q14 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:col:000443:014135

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