For those of you who closely follow OCC spot prices, there is a keen realization that price volatility is a fact of life for this commodity. As the accompanying charts indicate, using OBM OCC #11 Chicago high price as a benchmark (yellow line in Charts 1 and 2), price behavior since the mid-1990s has become increasingly cyclical. While the duration of each cycle low to high to low has varied over the years, mere appears to be some evidence that die amplitude of each cycle is increasing while the duration is becoming shorter. Generally speaking, this type of volatile movement is the rationale to justify hedging price.
展开▼
