Yang, JianAwokuse, Titus2004-10-102004-10-102002-06http://udspace.udel.edu/handle/19716/119This paper examines risk minimization hedging effectiveness for major storable and nonstorable agricultural commodity futures markets. Based on the error correction model – bivariate GARCH frameworks, some evidence is found that the hedging effectiveness is stronger for storable commodities than nonstorable commodities under consideration. The finding illustrates an important difference between storable and nonstorable commodities with regard to their hedging function.268313 bytesapplication/pdfen-USCommodity futuresAsset storabilityHedging effectivenessMultivariate GARCH JEL classification: D82, G19Staff Paper