How Do Forward Contracts Affect Strawberry Prices?

Sandeep Mohapatra, Rachael E. Goodhue, Colin A. Carter, and James A. Chalfant

from ARE Update Vol. 13, No. 5, May/June, 2010

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Abstract

The widespread use of contracts to market produce complicates the interpretation of market prices, and raises questions about the effects of contracting on the prices and risks faced by growers, shippers, and buyers who do not use contracts. This article examines the effects of informal forward contracts for strawberries on spot market prices and their volatility.

Keywords

strawberry market, contracts, forward contracts

Citation

Sandeep Mohapatra, Rachael E. Goodhue, Colin A. Carter, and James A. Chalfant. "How Do Forward Contracts Affect Strawberry Prices?" ARE Update 13(5)(2010):9-11. University of California Giannini Foundation of Agricultural Economics.
http://giannini.ucop.edu/publications/are-update/issues/2010/13/5/how-do-forward-contracts/