The Demise of the High Fructose Corn Syrup Contract: A Case Study
OFOR Working Paper No. 94-06
Posted: 15 Sep 1999
Date Written: June 1994
This paper focuses on the HFCS-55 industry and pricing practices, and the principal factors causing the demise of the HFCS-55 futures contract, which traded on the Minneapolis Grain Exchange between April 1987 and December 1988. Consideration is given to factors that promote and inhibit the success of a futures contract. Results from a survey of producers and commercial users of HFCS-55 are presented, and cash and futures market data are analyzed. Results suggest that if a contract is not well designed, or if there is little commercial demand for it, these failings will be quickly revealed in the futures market.
JEL Classification: G13, Q13
Suggested Citation: Suggested Citation