New Model Reveals Impact of Speculation on U.S. Dairy Markets
The article explores how cash and futures markets for U.S. dairy products behave over time and how speculation affects futures prices. The researchers found that cash prices for dairy products tend to return to their average levels, while futures prices can show different patterns. They developed a new model to analyze these price movements, showing that futures prices can have both predictable and unpredictable changes. This model helps understand how speculation impacts the prices of dairy products in the U.S.