IDEAS home Printed from https://ideas.repec.org/p/ags/ifma99/346540.html
   My bibliography  Save this paper

Is the South African Futures Market for Yellow Maize Efficient? Implications for Local Commercial Maize Farmers

Author

Listed:
  • Wiseman, J.A.
  • Darroch, M.A,G.
  • Ortmann, G.F.

Abstract

An efficient futures market should provide a forecast of the future spot (cash) price which reflects all publicly available information; ideally, for effective price discovery, such forecasts would also be unbiased The trading of yellow maize futures contracts began in South Africa in mid-J996 after the power of the Maize Board to set maize producer prices was abolished Cointegration analysis shows that (I) there is a long-run relationship between South African yellow maize futuresand spot prices, and (2) the futures price was cm unbiased predictor of spot prices for the three-month 1997 contract and annual 1998 contract, but a biased predictor for the three-month 1998 contract. Overall, this means that South African maize farmers can use price information derived from recently introduced yellow maize futures contracts to forecast "local" yellow maize cash prices. This information can help them in their planting decisions, in negotiating yellow maize cash prices with traders and millers, and in deciding whether, and what portion of their crop, to hedge against price risk by using futures contracts. efficient.

Suggested Citation

  • Wiseman, J.A. & Darroch, M.A,G. & Ortmann, G.F., 1999. "Is the South African Futures Market for Yellow Maize Efficient? Implications for Local Commercial Maize Farmers," 12th Congress, Durban, South Africa, July 18-24, 1999 346540, International Farm Management Association.
    • Handle: RePEc:ags:ifma99:346540
    DOI: 10.22004/ag.econ.346540
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/346540/files/IFMA12_032.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.346540?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Marketing; Crop Production/Industries;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifma99:346540. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifmaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.