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| Ramaswami, Bharat; Singh, Jatinder. |
| Abstract The limited presence of futures exchanges in developing countries where commodity markets fall short of the ideal underscore the importance of understanding the relation between spot and futures markets. The paper examines the exceptional success of the soya oil contract at the National Board of Trade (NBOT) in India. The paper asks whether the NBOT contract exhibits the fundamental features of mature futures markets in terms of its use by hedgers. If the market offers arbitrage opportunities to hedgers and if such activity is significant, then the activities of commercial firms should affect the returns to their hedging portfolio i.e., change in basis. This insight is developed into an examination of the impact of soya oil imports on the basis.... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Basis; Hedging; Futures market; Spot markets; Soya oil; Marketing; G13; Q13. |
| Ano: 2007 |
URL: http://purl.umn.edu/7919 |
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| Carriquiry, Miguel A.; Babcock, Bruce A.. |
| New production technologies, consumers who are more discriminating, and the need for improved coordination are among the forces driving the move from spot markets to contracts. Some worry that this tendency will result in the disappearance of spot markets, or at least that they will become too thin to be of help for an efficient price discovery process. Other authors point to the reduction in welfare of independent producers resulting from contracting in oligopsonistic industries. While a large body of literature is available tackling the contract versus spot market decision, much less is known about the reasons that lead to procurement in both markets. This paper provides a simple model to study how fundamental economic factors influence the contracting... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Contract markets; Contracting in agriculture; Specialty grains; Spot markets; Yield risk; Marketing. |
| Ano: 2004 |
URL: http://purl.umn.edu/18634 |
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| Nadolnyak, Denis A.; Fletcher, Stanley M.; Revoredo-Giha, Cesar. |
| In the paper, alternative contractual arrangements between crop producers and processors are evaluated with a view of addressing the major issues present in peanut markets in the U.S., the major EU supplier of high quality peanuts. The issues are the thinness of the spot markets and the absence of quality premiums, both of which impair market efficiency. Results indicate that introducing contracts with a system of quality differentials creates incentives for producer self-selection to participate in the post harvest cash market. Moreover, in the presence of sufficiently high common production risk, tournament contracts are more efficient and preferred by the producers than the standard fixed premium schedules. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Contracts; Tournaments; Efficiency; Spot markets; Peanuts; Marketing. |
| Ano: 2005 |
URL: http://purl.umn.edu/24703 |
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| Babcock, Bruce A.; Carriquiry, Miguel A.. |
| New production technologies, consumers who are more discriminating, and the need for improved coordination are among the forces driving the move from spot markets to contracts. Some worry that this tendency will result in the disappearance of spot markets, or at least that they will become too thin to be of help for an efficient price discovery process. Other authors point to the reduction in welfare of independent producers resulting from contracting in oligopsonistic industries. While a large body of literature is available tackling the contract versus spot market decision, much less is known about the reasons that lead to procurement in both markets. This paper provides a very simple model to study how fundamental economic factors influence the... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Contracting in agriculture; Spot markets; Yield risk; Marketing. |
| Ano: 2002 |
URL: http://purl.umn.edu/18404 |
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