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Premiums/Discounts and Predictive Ability of the Shrimp Futures Market

Published online by Cambridge University Press:  15 September 2016

Josué Martínez-Garmendia  and
James L. Anderson
Josué Martínez-Garmendia
Affiliation:
Department of Environmental and Natural Resource Economics at the University of Rhode Island
James L. Anderson
Affiliation:
Department of Environmental and Natural Resource Economics at the University of Rhode Island
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Abstract

Seafood futures contracts are a novelty in the derivative markets, having shrimp as their only exponent. Unfortunately, shrimp futures contracts have suffered a disappointing start. The analyses focus on testing whether premiums/discounts for non-par deliverable shrimp size categories can eliminate cash price differentials, and whether the shrimp futures market can predict cash prices without bias. Results indicate ineffective premiums/discounts and predictive bias. These results and the momentous changes taking place in the seafood industry are contrasted to discuss the viability of seafood futures contracts.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 30 , Issue 2 , October 2001 , pp. 160 - 167
Copyright
Copyright © 2001 Northeastern Agricultural and Resource Economics Association 

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