Increased use of alternative fuels and low commodity prices have contributed to the recent
expansion of the US ethanol industry. As with any competitive industry, some level of output …

The derivative accounting standard requires hedging to satisfy the 80–125 rule to be eligible
to apply the hedge accounting treatment. This means the hedging relationship should …

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 …

An empirical methodology is developed for statistically testing the hedging effectiveness
among competing futures contracts. The presented methodology is based on the …

Optimal multiproduct time-varying hedge ratios are determined–for a soybean complex–and
their risk-mitigating impact is contrasted over single-commodity time-varying and naive …

Previous research found that both soybean oil and heating oil futures should be used to
hedge biodiesel price risk. This was sensible because blending mandates caused biodiesel …

While considerable research has estimated liquidity costs of futures trading, little
comparable research is available about options markets. This study determines effective bid …

The fertilizer swaps market is a potential tool to protect against fertilizer price risk. The swaps
evaluated here are cash settled using The Fertilizer Index. Hedge ratios and hedging …

The growth in winter canola acreage in the southern Great Plains has led to questions about
the best way to reduce price risk because there is no US canola futures market. Cross …

Purpose–The purpose of this paper is to determine and contrast the risk mitigating
effectiveness from optimal multiproduct time-varying hedge ratios, applied to the margin of a …