Cross Hedging Cattle Rations Using Corn Futures

Main Article Content

Emmett Elam
Wade Donnell

Abstract

The feasibility of cross hedging cattle ration costs using corn futures was investigated. Simulation results for 1985-89 showed that unpredictable variations in ration costs could be reduced up to 54% with cross hedging. The greatest reduction in hedging risk was achieved for longer hedging horizons.

Article Details

How to Cite
Elam, E., & Donnell, W. (2016). Cross Hedging Cattle Rations Using Corn Futures. Texas Journal of Agriculture and Natural Resources, 5, 13–20. Retrieved from https://txjanr.agintexas.org/index.php/txjanr/article/view/303
Section
Research Articles