Does the tea market require a futures contract? Evidence from the Sri Lankan tea market

Devmali Perera, Jędrzej Białkowski and Martin T. Bohl

Research in International Business and Finance, 2020, vol. 54, issue C

Abstract: Tea is one of the most popular beverages in the world. Its consumption exceeds the consumption of milk, coffee and orange juice. Despite its importance, tea has not been considered a commodity on financial markets and there is still no futures contract on tea. This study adds to the current literature by providing an overview of the development of the world’s oldest and largely unknown tea market. In addition, this study examines the issue of whether it is feasible to introduce a tea futures contract that would be advantageous for tea market participants. In conclusion, this analysis indicates that introducing a successful tea futures contract is viable but challenging under the existing market structure.

Keywords: Agricultural commodity Market; Futures contract; Tea (search for similar items in EconPapers)
JEL-codes: G11 G13 Q02 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:54:y:2020:i:c:s0275531920300714

DOI: 10.1016/j.ribaf.2020.101290

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