Identification and Measurement of the Standards for Trading in Future Markets in Agricultural Crops

Document Type : Original Article

Authors

1 PhD student, Department of Agricultural Economics, Payame Noor University , Tehran, Iran.

2 Associate Professor, Department of Agricultural Economics, , Payame Noor University , Tehran, Iran.

3 Assistant Professor, Department of Agricultural Economics, Institute of Planning Research, Agricultural Economics and Rural Development, Tehran, Iran.

4 PhD, Department of Agricultural Economics, Payame Noor University , Tehran, Iran.

Abstract

The purpose of this research was to identify and measure the required standards for trading in future  markets in agricultural crops. To this end, 17 experts were selected and interviewed using the Grounded Theory and semi-structured interviews of experts. The data were analyzed after identifying the standards for 18 agricultural crops that were not listed on the Commodity Exchange and Futures Markets. The required data for calculating the standards were extracted from databases in 2008-2017. Initially, the data from previous research and interviews with experts were analyzed using the coding method. These data, which were extracted from in-depth interviews with 17 people, were analyzed in three steps of open coding, axial coding and selective coding and 40 extracted keywords were placed after changes (deletion and integration), which finally decided to select all standards on 6 standards. The required standards for acceptance in futures markets include crop revenue risk, cash market size, fluidity cost, degree of homogeneity, commerciality ratio, and perishability. According to each obtained standard, the required values for each product were calculated.

Keywords