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Complements or substitutes? Equivalent futures contract markets—the case of corn and soybean futures on U.S. and Japanese exchanges
Author(s) -
Holder Mark E.,
Pace R. Daniel,
Tomas Michael J.
Publication year - 2002
Publication title -
journal of futures markets
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.88
H-Index - 55
eISSN - 1096-9934
pISSN - 0270-7314
DOI - 10.1002/fut.10009
Subject(s) - futures contract , commodity , economics , futures market , financial economics , business , agricultural economics , finance
This article examines the relationship between corn and soybean futures volumes for contracts traded in theUnited States and Japan. Because the contract specifications for corn and soybeans futures traded on the ChicagoBoard of Trade (CBOT), the Tokyo Grain Exchange (TGE), and the Kanmon Commodity Exchange(KCE) are highly similar, the existence of interactions might be expected. Previous research hasidentified price relationships between these similar contracts. With the advent of agricultural trading on theCBOT's Project A overnight electronic trading system, an overlap of trading times of the U.S. and Japaneseexchanges for these commodity contracts resulted. An analysis of TGE and KCE corn and soybean futures volumesindicates that these contracts, rather than acting as substitutes, exhibit a complementaryrelationship. © 2002 Wiley Periodicals, Inc. Jrl Fut Mark 22:355–370, 2002