[Defended thesis] Narjiss Araba: The contribution of digital technology to the implementation of a price guarantee: application to cereal markets with futures and options

The contribution of digital technology to the implementation of a price guarantee: application to cereal markets with futures and options

My name is Narjiss Araba, and I'm working on my thesis in finance on the contribution of digital technology to the implementation of a price guarantee for French grain producers, within the MRM (Montpellier Research in Management) laboratory at the University of Montpellier.
I am a graduate of the Toulouse School of Economics (TSE), where I obtained a Master's degree in Environmental and Natural Resource Economics.
I did several internships in the world of research, notably with Irstea, and so I naturally turned towards a thesis, to participate in the creation and dissemination of knowledge.

• Starting date: October 2017
• University: MUSE Montpellier Université d’Excellence
• PhD school: EDEG , Montpellier
• Scientific field:  Economics – Finance
• Thesis management: Alain François-Heude, MRM, Université de Montpellier
• Thesis supervisors: Louis-Antoine Saïsset, Moisa, L’Institut Agro
• Funding: #DigitAg – Université de Montpellier
•  #DigitAg: Cofunded PhD – Axe 2 – Challenge 7

Keywords: Agricultural derivatives, hedging strategies, technology appropriation

Abstract: For an agricultural producer, the uncertainty on the price and the quantities leads to an important risk. The negotiation of a contract with an intermediary (stacker or broker) allows to transfer a part of the risk. An hedging position taken directly on the derivatives markets allows to optimize the profits. Having shown the relevance of an hedging (on the futures market andor on that of the options) from a point of view of a purely financial investor, the characteristics inherent to the grain farmer are integrated (cognitive capacity, risk aversion, the behavior of the stakeholders, the …). An IT application allowing to optimize the dynamic hedging will be developed on the basis of the model for an immediate decision by associating the producers and the financial partners, then in a prospect of sustainability of activity. An extension is envisaged to handle productions distant from the standard product exchanged on the financial markets of organic type. The managerial innovation is under tightened by the digital tool and should contribute to favor the appropriation of the tools of hedging in accordance with the producers.

Contact : narjiss.araba@umontpellier.fr

Social networks: ResearchGate – LinkedIn

Communications & Papers

Download the thesis manuscript

Araba N. and François-Heude A (2020), Revised rollover measure: an application to Euronext’s wheat futures contract, Finance Bulletin, 1(3), pp. 1-13.

• Présentation des travaux en cours à l’atelier axes 1 et 2 de #DigitAg “Les SHS et le numérique », 2 février 2018 – pdf à télécharger