Style and Performance of Agricultural Market Advisory Services

17 Pages Posted: 24 Apr 2020

See all articles by Silvina M. Cabrini

Silvina M. Cabrini

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Scott H. Irwin

University of Illinois at Urbana-Champaign

Darrel L. Good

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 2007

Abstract

This article develops measures of marketing style for advisory programs in corn and soybeans and estimates the relationship between style characteristics and pricing performance. Style is measured by the intensity of futures and options use, degree of activeness in marketing, and seasonality of sales. The data set consists of advisory programs tracked by the AgMAS project at the University of Illinois between 1995 and 2004. Results indicate that active programs making large bets on price movements obtain a higher average price than more conservative programs. This is consistent with active advisors possessing superior information and/or analytical skills rather than being overconfident. However, estimates of the relationship between pricing performance and activeness are sensitive to the inclusion of a single high‐performing program.

Keywords: agricultural market advisory services, corn, efficiency, marketing style, pricing performance, soybeans

Suggested Citation

Cabrini, Silvina M. and Irwin, Scott and Good, Darrel L., Style and Performance of Agricultural Market Advisory Services (August 2007). American Journal of Agricultural Economics, Vol. 89, Issue 3, pp. 607-623, 2007, Available at SSRN: https://ssrn.com/abstract=3583755 or http://dx.doi.org/10.1111/j.1467-8276.2007.01007.x

Silvina M. Cabrini (Contact Author)

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Urbana, IL 61801
United States

Scott Irwin

University of Illinois at Urbana-Champaign ( email )

344 Mumford Hall
1301 W. Gregory Dr.
Urbana, IL 61801
United States
217-333-6087 (Phone)

HOME PAGE: http://https://scotthirwin.com/

Darrel L. Good

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
326 Mumford Hall, MC-710
Urbana, IL 61801
United States

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