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Using Dual Objectives as Decision Guides to Hedge Oklahoma Feeder Cattle—An Economic Evaluation

Published online by Cambridge University Press:  28 April 2015

James R. Russell  and
Matthew C. Dickey
James R. Russell
Affiliation:
Department of Agricultural Economics, Oklahoma State University
Matthew C. Dickey
Affiliation:
Department of Agricultural Economics, Oklahoma State University
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Extract

The continued volatility of feeder cattle prices sustains interest in hedging strategies. The stocker operator may use technical or fundamental analysis for decision guides in the hedging program. Alternatively, the stocker operator could use profit objectives to guide the operator's hedging decisions. Previous works have developed strategies based on technical tools such as moving averages (Lehenbauer), point and figure analysis (Lehenbauer), and oscillators (Russell and Franzmann). Similarly, strategies have been developed that use fundamental analysis as a decision aid (Brown). However, no work has examined, in detail, strategies based on a management by objective philosophy—although at times the popular press has emphasized this approach (Farm Futures).

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 15 , Issue 2 , December 1983 , pp. 35 - 39
Copyright
Copyright © Southern Agricultural Economics Association 1983

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References

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