Did Producer Opportunities in the Live Hog Contract Decline?

Zanini, Fabio; Garcia, Philip

Content Files

OFOR97-05.pdf

Permalink

https://hdl.handle.net/2142/4057

Description

Title

Did Producer Opportunities in the Live Hog Contract Decline?

Author(s)

Zanini, Fabio
Garcia, Philip

Issue Date

1997

Keyword(s)

selective hedging strategies
forecast techniques

Date of Ingest

2008-03-18T18:23:22Z

Abstract

The paper assesses the usefulness of selective hedging strategies when combined with forecast techniques in the live hog contract. The use of routine futures and options hedging is not attractive relative to a cash-only strategy. However, forecasting and hedging can contribute to price risk management improvement for risk-averse producers. Consistent with previous research, the results indicate that the live hog contract continues to offer producers attractive pricing opportunities. The findings suggests that the success of the new lean value carcass contract may depend on its ability to attract trading volume from outside the traditional production sector.

Publisher

Office for Futures and Options Research, Department of Agricultural Economics, College of Agricultural, Consumer, and Environmental Sciences at the University of Illinois at Urbana-Champaign

Series/Report Name or Number

OFOR Working Paper Series, no. 97-05

Type of Resource

text

Genre of Resource

Working / Discussion Paper

Language

eng

Permalink

http://hdl.handle.net/2142/4057

Owning Collections

OFOR Working Paper Series PRIMARY