Document Type

Article

Publication Date

6-2014

Publication Title

Journal of Legal Studies

Abstract

Futures positions of commercial hedgers in wheat, corn, soybeans and cotton fluctuate much more than expected output. Hedgers' short positions are positively correlated with price changes. Together, these observations raise doubt about the common practice of categorically classifying trading by hedgers as hedging while trading by speculators as speculation, as hedgers frequently change their futures positions over time for reasons unrelated to output fluctuations, arguably a form of speculation.

DOI

10.1086/675720

Included in

Finance Commons

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