Document Type

Article

Publication Date

10-1-1984

Keywords

agricultural economics, commodity futures, crop prices

Abstract

A new interpretation of commodity futures price theory is evaluated because, currently, many products exhibit price behavior which cannot be explained with existing theory. A method for classifying products according to the particular price theory relevant to them is provided. The classification method uses the futures price dependence enforced by arbitrage opportunities in spot markets as its base. The futures markets for beef cattle and corn are used as examples.

Publisher

Department of Economics, South Dakota State University

Series Number

84-6

Number of Pages

25

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