Systematic Hog Price Management: Selective Hedging and Long-Term Risk Sharing Packer Contracts

Thumbnail Image
Date
1998
Authors
Wang, Zhi
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract

In addition to futures and options markets, long-term risk sharing hog procurement contracts offered by packers provide some degree of price risk protection for pork producers. The window contract and a moving average hedging strategy generated similar average returns and level of profit risk protection. The cost-plus contract provided a greater degree of risk protection from prices below cost of production and used a ledger account to ensure that prices average the same as the cash market over the long run.

Series Number
Journal Issue
Is Version Of
Versions
Series
Animal Science Research Reports
ASL R1504
Academic or Administrative Unit
Type
report
Comments
Rights Statement
Copyright
Thu Jan 01 00:00:00 UTC 1998
Funding
Keywords
DOI
Supplemental Resources
Source
Collections