CROSS HEDGING HAY USING CORN FUTURES: AN EMPIRICAL TEST
| dc.creator | Blake, Martin L. | |
| dc.creator | Catlett, Lowell B. | |
| dc.date | 2017-04-01T18:44:09Z | |
| dc.date.accessioned | 2026-07-09T04:16:52Z | |
| dc.description | This study examines the use of corn futures contracts to cross hedge both U.S. hay and New Mexico alfalfa hay. Correlations between monthly spot U.S. hay prices and corn futures prices ranged from .828 to .970 and were all significant at the alpha= .001 level. Multiple regression was used to determine the optimal corn futures contract month to cross hedge each spot monthly hay price. Regressions were used to determine the coverage ratio of tons of hay per corn futures contracts. A routine cross hedge was simulated and showed that cross hedging hay using corn futures increases gross returns per ton of hay. | |
| dc.identifier | doi:10.22004/ag.econ.32366 | |
| dc.identifier | https://ageconsearch.umn.edu/record/32366/files/09010127.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/32366 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/547533 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/32366 | |
| dc.title | CROSS HEDGING HAY USING CORN FUTURES: AN EMPIRICAL TEST | |
| dc.type | Text |