Revisiting the Determinants of Futures Contracts: The Curious Case of Distillers' Dried Grains

摘要: A futures market for distillers' dried grains (DDGs) was introduced on the Chicago Mercantile Exchange in early 2010, but became inactive only four months after its inception. While many new contracts do not develop into high-volume traders, significant interest from DDG cash participants seemed to indicate that this contract would be successful. This study examines whether it might have been possible predict ineffectiveness of contract. We test multiple factors found previous literature affect success contracts, as well impact and activeness supporting markets. In particular, we empirically determine lack activity ethanol contributed existing predicted a high likelihood contract, our estimation results draw conflicting conclusion primary reason an market.