Economics, Econometrics and Finance
5 years ago

Futures Prices Improve Daily Spot Price Predictions for Cattle Market

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The Role of Futures in Daily Forward Pricing
Ted Covey, David A. Bessler

Paper Summary

The study looked at using futures prices to predict daily spot prices for cattle. By analyzing different futures contracts, researchers found that a model using both cash and nearby futures prices was better at predicting spot prices than a model using only cash prices. This suggests that futures prices can help improve the accuracy of predicting daily spot prices for cattle.

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