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The Potential Of Dairy Futures Contracts As Risk Management Tools

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  • Wolf, Christopher A.
  • Berwald, Derek K.

Abstract

We examine the young dairy futures market as a risk management tool. Using New York Board of Trade (NYBOT) data, we find that the BFP futures market is efficient and may potentially be a useful hedging tool. However, we also find that competition from Chicago Mercantile Exchange (CME) contracts has significant detrimental effects on the NYBOT dairy futures contracts. As a result NYBOT dairy futures contracts are likely to dry up.

Suggested Citation

  • Wolf, Christopher A. & Berwald, Derek K., 1999. "The Potential Of Dairy Futures Contracts As Risk Management Tools," 1999 Annual meeting, August 8-11, Nashville, TN 21709, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21709
    DOI: 10.22004/ag.econ.21709
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    References listed on IDEAS

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