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Mar 1, 2024 · In this paper, we examine whether Fish Pool salmon futures contracts can be used as a risk management tool for producers and buyers of wild salmon, by investigating whether wild salmon prices can be cross-hedged against Fish Pool salmon futures contracts. Cross-hedging is a tool that can be used to reduce price risk when a direct hedge does not ...
- Determinants of the Atlantic salmon futures risk premium
Using data from the Fish Pool market we examine the impact...
- Determinants of the Atlantic salmon futures risk premium
About. Fish Pool offers an instrument for risk management which can offer a better predictability for the bottom line and at the same time offer the flexibility needed in order to trade an underlying biological product. The prices for Atlantic Salmon are highly volatile and represent a continuous risk for all parties involved.
competitiveness (Asche, 2008). Among these are Fish Pool, who established a futures exchange in 2007. For most large quantity food commodities, futures markets are an important risk management tool as producers and buyers can hedge price risk, and the futures market provides price discovery as the futures price provide an unbiased
The ever-growing price risk has intensified the need for adequate risk management tools, initially seen as traditional forward contracts initiated by market participants on both sides of the transactions. In 2005, a growing desire for a financial derivatives market was accommodated, with the establishment of the Fish Pool futures market. In the ...
- Bendik P. Andersen, Petter E. de Lange
- 2021
Dec 13, 2023 · A number of studies have documented that there is a global market for salmon, in which wild and farmed salmon have a common price determination process. Recent studies report that Norwegian farmed salmon spot prices are also cointegrated with the Fish Pool salmon future contract price, indicating that the futures market can be an important risk management tool, as producers and buyers can ...
Oct 19, 2018 · As such, it is an important risk management tool for producers and buyers alike; new and young futures markets do not always succeed. Brorsen and Fofana ( Citation 2001 ) offer an overview of the drivers of success and failure of agricultural futures contracts in general and Bergfjord ( Citation 2007 ) investigates the prospects of the salmon futures market.
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Jun 1, 2016 · Using data from the Fish Pool market we examine the impact on the risk premium in salmon futures of seasonality, statistical risk variables, and industry-specific risk factors. When using the basis as the only explanatory variables, the results show that variation in the basis significantly explains both the variation in the risk premium and that of the spot price change.
