dc.contributor.author |
Cropp, Bob |
|
dc.date.accessioned |
2011-05-05T21:55:50Z |
|
dc.date.available |
2011-05-05T21:55:50Z |
|
dc.date.issued |
2011-05-05 |
|
dc.identifier.uri |
http://hdl.handle.net/2097/8739 |
|
dc.description.abstract |
The two new milk futures contracts offer
dairy farmers and other buyers and sellers of
milk and dairy products additional opportunities
to manage price risk in an increasingly
volatile milk price environment. The availability
of these risk management tools is especially
important given the market-oriented
direction of federal dairy policy.
The CSCE and CME contracts differ somewhat
in their specifications. Potential hedgers
will need to evaluate which offers the best
opportunity to lock in prices. Hedgers also
should look at the cheese and nonfat dry milk
contracts in determining the most appropriate
risk management strategy. Strategies may
involve using more than one futures market.
Key in any hedging decision is the basis,
especially the predictability of the relationship
between cash and futures prices. Hedgers
should compare the alternative contracts in
terms of which yields the most predictable
basis given the type of hedge and the specific
market conditions affecting their business. |
en_US |
dc.publisher |
Kansas Agricultural Experiment Station |
en_US |
dc.relation.isPartOf |
Dairy Day, 1996 |
en_US |
dc.relation.isPartOf |
Kansas Agricultural Experiment Station contribution; no. 97-115-S |
en_US |
dc.relation.isPartOf |
Report of progress (Kansas Agricultural Experiment Station and Cooperative Extension Service); 771 |
en_US |
dc.subject |
Milk futures |
en_US |
dc.subject |
Hedging |
en_US |
dc.title |
Futures contracts for milk: how will they work? |
en_US |
dc.type |
Conference paper |
en_US |
dc.date.published |
1996 |
en_US |
dc.citation.epage |
12 |
en_US |
dc.citation.spage |
6 |
en_US |
dc.description.conference |
Dairy Day, 1996, Kansas State University, Manhattan, KS, 1996 |
|