| Abstract: | Profitable direct and cross hedging opportunities exist for Zaire coffee hedgers, and some periods may offer significantly superior opportunities. External events and internal policy changes contributed to instability of Zaire hedge ratios. The importance of internal economic and financial changes must be considered to supplement international coffee market information. Other Third World Countries should consider the potential of using international commodities and financials futures markets for information and risk management in the trade of raw materials but be aware of changes in market and financial risks relative to their domestic situation. |
