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Simple and Multiple Cross-Hedging of Rice Bran

Published online by Cambridge University Press:  28 April 2015

Emmett W. Elam ,
Stephen E. Miller  and
Shelby H. Holder
Emmett W. Elam
Affiliation:
Department of Agricultural Economics, University of Arkansas
Stephen E. Miller
Affiliation:
Department of Agricultural Economics and Rural Sociology, Clemson University
Shelby H. Holder
Affiliation:
Economic Research Service, USDA
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Abstract

Feasibility of forward pricing sales of rice bran via cross-hedging was investigated. Corn, oats, wheat, and soybean meal futures were considered as simple and multiple cross-hedging media. Simulation results indicated that simple cross-hedging using corn futures would be most effective in reducing price risks.

Keywords

rice brancross-hedgingcorn futures

Information

Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 18 , Issue 1 , July 1986 , pp. 123 - 128
Copyright
Copyright © Southern Agricultural Economics Association 1986

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