Cross Hedging Cattle Rations Using Corn Futures

Emmett Elam; Wade Donnell

Cross Hedging Cattle Rations Using Corn Futures

Authors

Emmett Elam
Wade Donnell

Keywords:

cross hedge, cattle ration, corn futures, fed cattle

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.

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Published

2016-11-10

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