Limiting price risk for fishmeal

What is it about?

The study shows that hedging with corn futures contracts in addition to soybean meal futures contracts further limits exposure to fishmeal cash price risk.

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Why is it important?

Fishmeal is an important feed ingredient in animal (e.g., poultry, hog, and cattle) and aquaculture (e.g., salmon, trout, and shrimp) diets. Conventionally, fishmeal price risk has been hedged with soybean meal futures, but also using corn futures helps to better manage fishmeal price risk.