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A Production Cross-Hedge for Long and Medium Grain Rough Rice Using Soft Red Winter Wheat Futures

Author

Listed:
  • Gleason, W.J.
  • Zacharias, T.P.
  • Lange, M.D.
  • Traylor, H.D.

Abstract

Routine preharvest cross-hedging of rice utilizing futures prices for wheat is examined. Average net prices from cross-hedging generally exceeded harvest pricing. Compared to harvest pricing, cross-hedging price distributions exhibited less variability. Results indicated that an April cross-hedge was the preferred marketing strategy under the third-degree stochastic dominance criterion.

Suggested Citation

  • Gleason, W.J. & Zacharias, T.P. & Lange, M.D. & Traylor, H.D., 1986. "A Production Cross-Hedge for Long and Medium Grain Rough Rice Using Soft Red Winter Wheat Futures," 1986 Annual Meeting, July 27-30, Reno, Nevada 278404, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea86:278404
    DOI: 10.22004/ag.econ.278404
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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