archive of the former site EconWPA.wustl.edu

Please do not link or reference this page. Use one of the following URLs:
econpapers.repec.org as http://econpapers.repec.org/paper/wpawuwpfi/9712005.htm
ideas.repec.org as http://ideas.repec.org/p/wpa/wuwpfi/9712005.html

Did Producer Hedging Opportunities in the Live Hog Contract Decline?

Paper:ewp-fin/9712005
From:    
Date: Tue, 16 Dec 97 20:59:28 CST

Title: Did Producer Hedging Opportunities in the Live Hog Contract Decline?
Author: Fabio C. Zanini (The University of Illinois, Urbana- Champaign)and Philip Garcia (The University of Illinois, Urbana- Champaign)
Contact:
Comments: Type of Document - pdf ; prepared on PC; to print on HP Laserjet; pages: 14; figures: included. Office for Futures and Options Research (OFOR) at the University of Illinois, Urbana-Champaign. Working Paper 97-05. For a complete list of OFOR working papers see http://w3.ag.uiuc.edu/ACE/ofor
Keywords: hedging, forecasting, risk management, live hog futures, lean hog futures
JEL: Q, Q13
EWPA-references:
Report-no: OFOR-97-05

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.

Acrobat pdf files:(viewing .pdf) archive: 9712005.pdf is 50978 bytes, 11-17-97, or 9712005.pdf.gz
Access statistics for this paper at LogEc which is a part of the RePEc project as was/is EconWPA.
Translate to another language with babel.altavista.com EconWPA reference ewp-fin/9712005
RePEc reference RePEc:wpa:wuwpfi:9712005 send e-mail to

EconWPA began as a conversation between Bob Parks and Larry Blume on January 28, 1993. I located Paul Ginsparg's archive (then xxx.lanl.gov) and he graciously installed his software on a Sun Sparc system which was supporting the department of economics email and computation. EconWPA began accepting papers July 1, 1993 and had ftp, email, gopher and web interfaces. The web interface for submissions was engineered into existence in July 1995. A complete and catastrophic machine failure in 1999 caused the loss of EconWPA's email new paper announcment service at which time there were over 15,000 subscriptions with over 8,000 unique email addresses.

In 2005, Arts and Sciences commandeered the computing services that I had provided to the Department of Economics since 1987. Some might say that the department was sold out, others would (erroneously) claim that centralization is efficient, and still others would claim that I have few marketing skills.

I was told that I could keep operating EconWPA (as well as many other services including rfe.wustl.edu, barnett.wustl.edu, and three RePEc servers) but I would receive no support (hardware, software, or anthing else) and (as had been the case) no compensation. At that point, given the apparent low valuation of my activities by the department, and university, it made no sense for me to continue operating EconWPA or other services.

Thanks to all who have supported EconWPA in the past.

A Chinese curse states May you live in intersting times. I have. Bob Parks - Jan 2006