Frequency of Short Hedging Opportunities for Texas Cotton Producers, 1986

W.C. Wood, C.E. Shafer, and C.G. Anderson


 
ABSTRACT

The cotton futures market may or may not provide profitable hedging opportunities for producers. The frequency and duration of profitable hedging opportunities for Texas producers were examined. Break-even prices were computed for Texas High Plains and Rio Grande Valley cotton producers based on regional budgets prepared by the Texas Agricultural Extension Service. The frequency and duration of profitable price levels adjusted for local basis and quality were compared for the appropriate hedging months during 1979-86 crop years.



Reprinted from 1988 Proceedings: Beltwide Cotton Production Research Conferences pp. 463 - 467
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998