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Thursday, July 23, 2020 | History

2 edition of Cross-hedging fishmeal with soybean meal futures found in the catalog.

Cross-hedging fishmeal with soybean meal futures

Tomislaw Vukina

Cross-hedging fishmeal with soybean meal futures

by Tomislaw Vukina

  • 241 Want to read
  • 38 Currently reading

Published by University of Rhode Island, Dept. of Resource Economics, Oregon State University, Dept. of Agricultural & Resource Economics in Kingston, RI, Corvallis, OR .
Written in English

    Subjects:
  • Prices -- Forecasting -- Mathematical models.,
  • Hedging (Finance).,
  • Fish meal -- Economic aspects.,
  • Soybean meal -- Economic aspects.

  • Edition Notes

    Statementby Tomislav Vukina and James L. Anderson.
    SeriesURI/OSU research paper series -- RI-92-105., Aquaculture and seafood markets
    ContributionsAnderson, James Lavalette., University of Rhode Island. Dept. of Resource Economics., Oregon State University. Dept. of Agricultural and Resource Economics.
    The Physical Object
    Pagination17 p. :
    Number of Pages17
    ID Numbers
    Open LibraryOL18137172M

    grains with corn and soybean meal futures (Miller, a). Miller (b) found that cross-hedging of feeder pigs with both live hog and corn futures was more effective than the use of only live hog futures. Cross-hedging is more complicated than direct hedging on several counts. Soybean Meal Composition - soybean meal is a fairly consistent feed ingredient; therefore these average values should be of value in programming feed formulation computers. Soybean Cake or Soybean Chips is the product after most of the oil is extracted from whole soybeans by pressure or solvents from soybeans.

    Tomislaw Vukina has written: 'Cross-hedging fishmeal with soybean meal futures' -- subject(s): Economic aspects, Economic aspects of Fish meal, Economic aspects of Soybean meal, Fish meal. Key words: dynamic cross-hedging, fishmeal, state-space forecasting, uncertainty. In this paper we investigate cross-commodity hedging possibilities between a processed re-newable natural resource (fishmeal) and a pro-cessed agricultural commodity (soybean meal). Our objectives are to design a dynamic hedging.

    Cross-Hedging: Hedging a cash commodity using a different but related futures contract when there is no futures contract for the cash commodity being hedged and the cash and futures markets follow similar price trends (e.g., using soybean meal futures to hedge fish meal). Crush Spread: Customer Margin. Mr Wang said that currently 54 out of cultured fish species are fed diets containing soybean meal or soy products, and with around 1, more fish under evaluation as new aquaculture species, opportunities abound for researching and evaluating soybeans as a viable fish feed.


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Cross-hedging fishmeal with soybean meal futures by Tomislaw Vukina Download PDF EPUB FB2

Downloadable. During the fishmeal price nearly doubled from $MT to over $MT. The objective of this research is to determine the optimal cross-hedge ratio between fishmeal and soybean meal and corn, and corresponding hedging weight between corn and soybean.

Results indicate all hedging weight should be placed on the corn futures contract. Cross-Hedging Fishmeal: Exploring Corn and Soybean Meal Futures Contracts Fishmeal is an important feed ingredient in fr esh water aquaculture feed and cattle and dairy (ruminant) diets.

Cross-Hedging Fishmeal: Exploring Corn and Soybean Meal Futures Contracts. Fishmeal is an important feed ingredient in fresh water aquaculture feed and cattle and dairy (ruminant) diets. Levels of fishmeal added to diets has been found to enhance milk production in dairy cows and enhance growth and health of young calves.

Cross-Hedging Fishmeal: Exploring Corn and Soybean Meal Futures Contracts. Cross-Hedging Fishmeal: Exploring Corn and Soybean Meal Futures Contracts Fishmeal is an important feed ingredient in fresh water aquaculture feed and cattle and dairy (ruminant) diets. Levels of fishmeal added to diets has been found to enhance milk production in dairy cows and enhance growth and health of young calves.

During the fishmeal price nearly doubled from $MT to over $MT. The objective of this research is to determine the optimal cross-hedge ratio between fishmeal and soybean meal and corn, and corresponding hedging weight between corn and soybean.

Results indicate all hedging weight should be placed on the corn futures contract. Soybean meal futures contracts have been shown to be effective cross-hedges for managing fishmeal price risk. Recent supply shocks and growth of aquaculture, poultry, and hog production, where nutrient requirements limit substitution of soybean meal for fishmeal more so than in cattle diets, may be undermining the historical price relationship.

What is Cross-Hedging. Hedging a cash commodity using a different but related futures contract when there is no futures con.

using soybean meal futures to hedge fish meal). Find information for Soybean Meal Futures Quotes provided by CME Group. View Quotes. Markets Home Active trader.

Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio. Find a broker. Search our directory for a broker that fits your needs.

Free intra-day Soybean Meal (Globex) Futures Prices / Soybean Meal (Globex) Quotes. Commodity futures prices / quotes and market snapshots that. Cross Hedging Whole Cottonseed with Soybean Futures Click here for a seven minute video summary of this issue. Cottonseed is an important joint product of upland cotton production, where roughly pounds of seed on average are produced from.

Downloadable. This study examines the feasibility of cross-hedging cottonseed meal with soybean meal futures. The simple linear regression of cottonseed meal cash prices on soybean meal futures provides a direct price movement relationship.

Using the estimated hedge-ratios, the net realized prices are calculated for seven different cash markets. factors for futures contracts identified by the literature. To do so, we conduct both quantitative and qualitative analysis.

We utilise data on fishmeal prices and production statistics, in addition to prices and trading volumes of soybean meal and corn futures, between and The quantitative analysis consists of two separate approaches.

The empirical analyses suggest that soybean meal futures can be used as a potential cross-hedging vehicle for cottonseed meal. Key words: soybean meal, cottonseed meal, cross-hedging, bayesian.

Faculty Series are circulated without formal review. The views contained in this paper are the sole responsibility of the authors.

Ethanol mandates have led to an increase in the production of distillers dried grains (DDGs), a co-product of ethanol production that is incorporated into livestock rations. As with most competitive industries, there is some level of price risk in handling DDGs, and there is no DDG futures contract available for managing price risk.

Commonly, DDGs are hedged using only corn futures. In this example, cottonseed is priced at $ per ton and nearby soybean meal futures are trading at $ per ton on the first week of July in Shorting seven soybean meal contracts is necessary for the gin to protect against a decline in price for 1, tons of cottonseed, as mentioned earlier using the optimal hedge ratio.

Determining which contract to use when cross hedging a specific commodity is not always obvious and may require analysis comparing relative price patterns of several different futures contracts.

For example, when cross hedging a commodity such as alfalfa, corn futures, soybean meal futures, or a combi-nation of the two may be considered. On a species level, freshwater demand at 0% fishmeal inclusion (all fishmeal was substituted by plant-based ingredients) was relatively higher for P.

monodon in both scenarios compared to L. vannamei as a result of the higher inclusion of water demanding crop ingredients (soybean meal, rapeseed meal, and pea protein concentrate).

The bottom line is that soybean meal produced in the United States contains at least kcal more DE, ME and NE than indicated by current book values. “If you get 10% more energy out of your soybean meal, that makes that soybean meal more attractive in formulations so you can actually formulate diets that are less expensive,” he says.

Corn. Scenario 2 – Tortilla Purchases on Basis: If Tortilla prices its soymeal parcel as a basis against the Soybean Meal futures price, it can hedge its price risk with either a futures contract or a call option contract. In essence, using a futures contract would effectively allow Tortilla the ability to fix the cost of soymeal, whereas a call.

Fermenting soybean meal may improve digestibility, antioxidant capacity and immune response when the alternative protein replaces fishmeal in farmed Japanese seabass diets, say researchers.

An international team of researchers from China and the US explored the use of bacteria- or yeast-fermented soybean meal (SM) as protein alternatives in the.Cross-Hedging: Hedging a cash commodity using a different but related futures contract when there is no futures contract for the cash commodity being hedged and the cash and futures markets follow similar price trends (e.g., using soybean meal futures to hedge fish meal).

Crush Spread: The purchase of soybean futures and the simultaneous sale. In the last year, there has been a shortage of the fish, leading to high prices for fishmeal and influencing high prices for soybean meal, also a cattle feed.

The soybean meal contract dropped as.