THE POTENTIAL OF DAIRY FUTURES CONTRACTS AS RISK MANAGEMENT TOOLS

Christopher Wolf () and Derek K. Berwald

No 21709, 1999 Annual meeting, August 8-11, Nashville, TN from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: We examine the young dairy futures market as a risk management tool. Using New York Board of Trade (NYBOT) data, we find that the BFP futures market is efficient and may potentially be a useful hedging tool. However, we also find that competition from Chicago Mercantile Exchange (CME) contracts has significant detrimental effects on the NYBOT dairy futures contracts. As a result NYBOT dairy futures contracts are likely to dry up.

Keywords: Financial Economics; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 15
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea99:21709

DOI: 10.22004/ag.econ.21709

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