The Adequacy of Speculation in Agricultural Futures Markets: Too Much of a Good Thing?
Dwight R. Sanders,
Scott Irwin and
Robert P. Merrin
Applied Economic Perspectives and Policy, 2010, vol. 32, issue 1, 77-94
This paper revisits the "adequacy of speculation" debate in agricultural futures markets using the positions held by index funds in the Commitment of Traders reports. Index fund positions were a relatively stable percentage of total open interest from 2006–2008. Traditional speculative measures do not show any material shifts over the sample period. Even after adjusting speculative indices for commodity index fund positions, values are within the historical ranges reported in prior research. One implication is that long-only index funds may be beneficial in markets traditionally dominated by short hedging.
References: Add references at CitEc
Citations: View citations in EconPapers (107) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Journal Article: The Adequacy of Speculation in Agricultural Futures Markets: Too Much of a Good Thing? (2010)
Working Paper: The Adequacy of Speculation in Agricultural Futures Markets:Too Much of a Good Thing? (2008)
Working Paper: The Adequacy of Speculation in Agricultural Futures Markets: Too Much of a Good Thing? (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:apecpp:v:32:y:2010:i:1:p:77-94.
Ordering information: This journal article can be ordered from
Access Statistics for this article
Applied Economic Perspectives and Policy is currently edited by Timothy Park, Tomislav Vukina and Ian Sheldon
More articles in Applied Economic Perspectives and Policy from Agricultural and Applied Economics Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().