Abstract

GODINEZ PLACENCIA, José Alberto  and  FUENTES FLORES, Noé Arón. The Economic Conditions of a Futures Market of White Corn in Mexico. Inv. Econ [online]. 2008, vol.67, n.264, pp.15-37. ISSN 0185-1667.

The main purpose of this paper was to investigate about necessary conditions to operate a futures exchange of white corn in Mexico, such as: 1) the integration between the yellow corn price of the Chicago Futures Exchange and the spot price of the white corn in Mexico, and 2) the integration among the regional prices of white corn in Mexico. We applied Johansen's multivariate cointegration to determine the integration of the wholesale prices in the supply warehouse and the producer prices in Mexico with the future price of the Chicago futures market. The result of the multivariate cointegration was that both conditions exist. The main implication of this research is that it is not optimum to use the Chicago futures market to hedge the market risk of white corn in Mexico.

Keywords : internacional market; integration; prices.