HEDGING CLASS I MILK: THE "ACCELERATION" AND "MOVER" EFFECT

A volatile closing basis prevents class I hedgers from locking in a minimum price. The closing basis is composed of an "acceleration" and "mover" effect. The mover effect always works to the producer's advantage unlike the acceleration effect. This research discusses hedging strategies to minimize the acceleration effect.

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Year of publication:	2004
Authors:	Zylstra, Michael J. ; Kilmer, Richard L. ; Uryasev, Stanislav
Institutions:	Agricultural and Applied Economics Association - AAEA
Subject:	Marketing

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Extent:	application/pdf
Series:	2004 Annual meeting, August 1-4, Denver, CO.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2004 Annual meeting, August 1-4, Denver, CO Number 20109
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005060950