Pricing efficiency in the U.S. hog futures market



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Texas Tech University


Numerous research effi)rts have tested the pricing efficiency of the hog futures market. However, the definitive conclusion of those tests has not yet been established. The objectives of this study were:

(1) to identify the structural relationships among the factors which affect the price of five hogs;

(2) to formulate the econometric model in order to forecast the five hog prices; and

(3) to examine the pricing efficiency of the hog futures market by investigating the relationship among spot prices, expected spot prices, and futures prices of five hogs.

Time series and econometric methods were used to predict the hog prices.