4,881 research outputs found

    Cash Settlement of Lean Hog Futures Contracts Reexamined

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    In 1997 the Chicago Mercantile Exchange replaced its live hog futures contract with a cash settlement mechanism based on a Lean Hog Index. Although cash settlement was expected to increase the use of the contract as a hedging tool, producers and packers are concerned that convergence between cash and futures prices is not occurring and that the volatility of the lean hog contract basis has increased in recent years. The purpose of the paper is to reexamine cash settlement of lean hog futures contracts as a hedging tool, focusing on basis behavior and management of basis risk. We also investigate alternative hedging instruments that take into account location differences between regional cash prices and the CME lean hog index. Our results indicate that basis has widened and its variability prior to expiration has increased in the cash settlement period. Nevertheless, there is no evidence that ex-ante basis risk has increased, suggesting that the ability to forecast basis prior to expiration has not decreased with cash settlement. Our findings indicate that a contract on a regional basis can reduce producer price risk and may increase market returns. The benefits of a regional basis appear to accrue from providing the producer with an opportunity to manage the variability in returns associated with both the price level and basis.basis behavior, cash settlement, ex-ante basis risk, lean hogs futures contract, regional basis, Agricultural Finance,

    Weak positive cloud-to-ground flashes in Northeastern Colorado

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    The frequency distributions of the peak magnetic field associated with the first detected return stroke of positive and negative cloud-to-ground (CG) flashes were studied using lightning data from northeastern Colorado. These data were obtained during 1985 with a medium-to-high gain network of three direction finders (DF's). The median signal strength of positive flashes was almost two times that of the negatives for flashes within 300 km of the DF's, which have an inherent detection-threshold bias that tends to discriminate against weak signals. This bias increases with range, and affects the detection of positive and negative flashes in different ways, because of the differing character of their distributions. Positive flashes appear to have a large percentage of signals clustered around very weak values that are lost to the medium-to-high gain Colorado Detection System very quickly with increasing range. The resulting median for positive signals could thus appear to be much larger than the median for negative signals, which are more clustered around intermediate values. When only flashes very close to the DF's are considered, however, the two distributions have almost identical medians. The large percentage of weak positive signals detected close to the DF's has not been explored previously. They have been suggested to come from intracloud discharges and thus are improperly classified as CG flashes. Evidence in hand, points to their being real positive, albeit weak CG flashes. Whether or not they are real positive ground flashes, it is important to be aware of their presence in data from magnetic DF networks

    Adaptation to geometrically skewed moving images : an asymmetrical effect on the double-drift illusion

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    Progressive addition lenses introduce distortions in the peripheral visual field that alter both form and motion perception. Here we seek to understand how our peripheral visual field adapts to complex distortions. The adaptation was induced across the visual field by geometrically skewed image sequences, and aftereffects were measured via changes in perception of the double-drift illusion. The double-drift or curveball stimulus contains both local and object motion. Therefore, the aftereffects induced by geometrical distortions might be indicative of how this adaptation interacts with the local and object motion signals. In the absence of the local motion components, the adaptation to skewness modified the perceived trajectory of object motion in the opposite direction of the adaptation stimulus skew. This effect demonstrates that the environment can also tune perceived object trajectories. Testing with the full double-drift stimulus, adaptation to a skew in the opposite direction to the local motion component induced a change in perception, reducing the illusion magnitude (when the stimulus was presented on the right side of the screen. A non-statistically significant shift, when stimuli were on the left side). However, adaptation to the other orientation resulted in no change in the strength of the double-drift illusion (for both stimuli locations). Thus, it seems that the adaptor's orientation and the motion statistics of the stimulus jointly define the perception of the measured aftereffect. In conclusion, not only size, contrast or drifting speed affects the double-drift illusion, but also adaptation to image distortions

    Initiation codon selection is accomplished by a scanning mechanism without crucial initiation factors in sindbis virus subgenomic mRNA

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    Translation initiation of alphavirus subgenomic mRNA (sgmRNA) can occur in the absence of several initiation factors (eIFs) in infected cells; however, the precise translation mechanism is still poorly understood. In this study, we have examined the mechanism of initiation and AUG selection in Sindbis virus (SINV) sgmRNA. Our present findings suggest that sgmRNA is translated via a scanning mechanism, since the presence of a hairpin structure before the initiation codon hampers protein synthesis directed by this mRNA. In addition, translation is partially recovered when an in-frame AUG codon is placed upstream of this hairpin. This scanning process takes place without the participation of eIF4A and active eIF2. These results, combined with our findings through modifying the SINV sgmRNA leader sequence, do not support the possibility of a direct initiation from the start codon without previous scanning, or a shunting mechanism. Moreover, studies carried out with sgmRNAs containing two alternative AUG codons within a good context for translation reveal differences in AUG selection which are dependent on the cellular context and the phosphorylation state of eIF2α. Thus, initiation at the additional AUG is strictly dependent on active eIF2, whereas the genuine AUG codon can start translation following eIF2α inactivation. Collectively, our results suggest that SINV sgmRNA is translated by a scanning mechanism without the potential participation of crucial eIFs. A model is presented that explains the mechanism of initiation of mRNAs bearing two alternative initiation codonsThis work was supported by a DGICYT (Dirección General de Investigación Científica y Técnica. Ministerio de Economía y Competitividad, Spain) grant BFU2012-31861. M.G.-M. is holder of a FPI (Formación de Personal Investigador) fellowship. The Institutional Grant awarded to the Centro de Biología Molecular “Severo Ochoa” (CSIC-UAM) by the Fundación Ramón Areces is acknowledge
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