Soybean market in Paraná, hedging using futures and options contracts in bolsa balcão

In this study, it is analyzed the importance and the possible utility of futures contracts and option contracts with financial settlement for hedging purpose, in soybean commodity, for region of Paraná, Brazil. We collected historical data regarding the applications of those two financial instruments in different commodities markets, the historical variability of the soybean price and its social-economic and importance for the region under analysis. The historical data about the use of these financial instruments, in different types of agricultural commodities, has proven the efficiency of those tools to mitigate the impacts of the unpredictability on price levels. Our findings suggest that both the futures contracts, in their different forms, and the option contracts are a possible alternative for efficient risk management for the soybean market in the Paraná region.

Soybean market in Paraná, hedging using futures and options contracts in bolsa balcão - B³ Artigo de Conferência