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

Date
1998
Authors
Lawrence, John
Wang, Zhi
Lawrence, John
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Altmetrics
Authors
Research Projects
Organizational Units
Journal Issue
Department
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.

Comments
Description
Keywords
Citation
DOI
Source
Collections