Agricultural Economics Department

 

Cornhusker Economics

Date of this Version

4-23-1997

Document Type

Article

Citation

Cornhusker Economics, April 23, 1997, agecon.unl.edu/cornhuskereconomics

Comments

Copyright 1997 University of Nebraska.

Abstract

Multi-year hedging involves placing a hedge for more than one year and then unwinding it as physical product is sold. A recent study analyzed two-year hedges for corn in an attempt to capture the higher prices that occurred over the 23-year period of 1973- 1995. Cash prices were for No. 2 yellow corn at Omaha on October 15, or the nearest business day. Futures prices were from the December contract month at the Chicago Board of Trade.

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