Marketing of Agricultural ProductsAppropriate for the introductory course in agricultural marketing taught out of business departments or agricultural departments.
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Page 344
... hedge as follows : Date Cash Market Futures Market Basis March 19 Buy 100,000 bu . Sell 100,000 bu . March 25 @ $ 2.00 Sell 100,000 bu . @ $ 2.50 Buy 100,000 bu . $ .50 @ $ 1.90 @ $ 2.40 $ .50 Gain or Loss $ - . 10 $ + . 10 March 25 ...
... hedge as follows : Date Cash Market Futures Market Basis March 19 Buy 100,000 bu . Sell 100,000 bu . March 25 @ $ 2.00 Sell 100,000 bu . @ $ 2.50 Buy 100,000 bu . $ .50 @ $ 1.90 @ $ 2.40 $ .50 Gain or Loss $ - . 10 $ + . 10 March 25 ...
Page 345
... hedge when prices rise , but this is hindsight . Without the hedge , the owner would run the risk of the price falling . This illustrates an im- portant point about hedging : A hedge not only protects the hedger against falling prices ...
... hedge when prices rise , but this is hindsight . Without the hedge , the owner would run the risk of the price falling . This illustrates an im- portant point about hedging : A hedge not only protects the hedger against falling prices ...
Page 346
... hedging is both a risk - management and a profit - making tool . Businesses normally use the storage hedge when commodities are to be held for a period of time during which the basis is expected to narrow . This hedge has two purposes ...
... hedging is both a risk - management and a profit - making tool . Businesses normally use the storage hedge when commodities are to be held for a period of time during which the basis is expected to narrow . This hedge has two purposes ...
Contents
INTRODUCTION TO FOOD MARKETING | 3 |
ANALYZING AGRICULTURAL AND FOOD MARKETS | 21 |
AGRICULTURAL PRODUCTION AND MARKETING | 44 |
Copyright | |
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advertising areas bargaining beef brand broilers buyers and sellers buying cash price changes commodities competitive consumers consumption cooperatives corn cotton crop dairy products decentralization demand Department of Agriculture efficiency elevator example exports farm and food farm prices farm products farmers federal feed feedlots food industry food marketing firms food marketing system food prices food processors food products food retailing fresh fruit and vegetable futures contract futures market futures price grain harvest hedge hogs important increased integration keting livestock manufacturers market information market power marketing channel marketing costs marketing functions marketing orders marketing process meat milk oilseeds operations output packers percent perfectly competitive plants poultry price and income price supports product bundle product differentiation profits programs purchase rates regulations reports Research sell Service soybeans standards stocks storage sumers supply terminal markets tion tobacco trade transportation trends U.S. Department U.S. farm USDA wholesalers