A Producer-Level Cross-Hedge for Rough Rice Using Wheat Futures
Thomas P. Zacharias, Mark D. Lange, William J. Gleason, Harlon D. Traylor
Abstract
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Thomas P. Zacharias, Mark D. Lange, William J. Gleason, Harlon D. Traylor
Abstract
Open-access reader
Abstract This study explores the potential of routine preharvest cross-hedging of rough rice using wheat futures contract prices. A numerical simulation approach combined with risk efficiency analysis evaluates a wide range of cross-hedging alternatives. Results establish that farm-level cross-hedging can be considered a viable marketing alternative.
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Abstract This study explores the potential of routine preharvest cross-hedging of rough rice using wheat futures contract prices. A numerical simulation approach combined with risk efficiency analysis evaluates a wide range of cross-hedging alternatives. Results establish that farm-level cross-hedging can be considered a viable marketing alternative.
Key concepts: Futures contract, Preharvest, Hedge, Economics, Range (aeronautics), Financial economics, Econometrics, Engineering