An Analysis of Alternative Corn Importing Strategies for Taiwan

Taiwan grain importers have been under the protection of government policies in importing feed grains since the early 1970's. However, the policy for grain importing will be liberalized in the near future. Under the liberalized purchasing environment, importers will be exposed to various risks in the international market, therefore this study designs, analyzes and recommends to Taiwan importers alternative purchasing strategies for corn from the U.S. The international use of futures markets as a risk management tool has become an important research subject in recent years. This study designs alternative importing strategies for Taiwan corn importers using the futures market; determines the timing of hedging through the use of price forecasts; develops an optimal hedging strategy to determine importers' hedging levels; determines the optimal quantity of physical product to buy and hold in each month utilizing the price forecasts and a quadratic programming model; simulates the costs associated with each strategy; compares purchasing strategies within the context of mean-variance criterion and stochastic dominance procedures; and finally provides marketing and pricing recommendations to Taiwan importers of corn.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Agricultural Economics

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2014

Author dc:creator

• Chen, Nen-Jing

Contributors dc:contributor

• Leuthold, Raymond M.

• Economics, Agricultural

Identifier

(UMI)AAI8823099

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/69886