"Is there an Optimal Month to Forward Contract?" by Dermot J. Hayes

Selected Works of Dermot J. Hayes

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Is there an Optimal Month to Forward Contract?

Agricultural Policy Review

Dermot J. Hayes, Iowa State University

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Publication Date

1-1-2014

Disciplines

Agribusiness,
Agricultural and Resource Economics,
Agricultural Economics and
Finance

Abstract

Futures and forward contracts for harvest delivery should be efficient predictors of the price at harvest, with no obvious trend in profitability of hedging across various months. However, data collected from 1993 to 2013 reveals that there may actually be an economically optimal time for grain producers to forward contract.

Citation Information

Dermot J. Hayes. "Is there an Optimal Month to Forward Contract?" (2014)
Available at: http://works.bepress.com/dermot_hayes/90/