Abstract
Four hypotheses about the price-forecasting performance of live cattle and hog futures are tested using disaggregated data. Live cattle futures are found to have inadequate forecasting performance for each hypothesis and do not provide better forecasts than lagged cash prices. Live hog futures perform well for three hypotheses, but not when economic conditions are unstable. Hog futures provide better forecasts than lagged cash prices. The analysis does not support the contention that these futures markets are agencies for rational price formation.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 209-215 |
| Number of pages | 7 |
| Journal | American Journal of Agricultural Economics |
| Volume | 63 |
| Issue number | 2 |
| DOIs | |
| State | Published - May 1981 |
| Externally published | Yes |
Keywords
- Beef cattle
- Futures markets
- Hogs
- Price forecasting performance
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics