scholarly journals Underlying Trends and International Price Transmission of Agricultural Commodities

2011 ◽  
Author(s):  
Atanu Ghoshray
Keyword(s):  
Price Transmission ◽  
Agricultural Commodities ◽  
International Price

International Price Changes of Agricultural Commodities and Their Impacts on Income Distribution and Poverty in Brazil

2006 ◽  
Author(s):  
Joaquim Guilhoto ◽  
Carlos Roberto Azzoni ◽  
Fernando Gaiger Silveira ◽  
Tatiane A. de Menezes ◽  
Marcos M. Hasegawa ◽  
...  
Keyword(s):  
Income Distribution ◽  
Agricultural Commodities ◽  
Price Changes ◽  
International Price

scholarly journals How has the minimum support price policy of India affected cross-commodity price linkages?

2021 ◽  
pp. 1-18
Author(s):  
Luis Emilio Morales ◽  
Jean Balié ◽  
Emiliano Magrini
Keyword(s):  
Market Integration ◽  
Commodity Price ◽  
Price Policy ◽  
Price Transmission ◽  
Agricultural Commodities ◽  
Price Shocks ◽  
Minimum Support ◽  
Risk Levels ◽  
Support Price ◽  
The Government

For several decades, the government of India has implemented a minimum support price (MSP) policy for agricultural commodities to reduce price risk levels for farmers. Concerns have been raised about whether this policy could affect market integration of related agricultural products, modify price incentives, and ultimately alter resource allocation and production between commodities. This study uses a panel vector auto-regression model across six states for the period 2002-2017 to analyse the effects of the MSP on the transmission of price shocks between cereals and oilseeds. The results demonstrate that the MSP partially and completely offsets price linkages between agricultural commodities, potentially introducing distortions in price incentives that affect land allocation and production between commodities. Beyond the effects of the MSP across commodities, Indian authorities can expect that price shocks on maize be transmitted to soybean over the next production period. Finally, this study demonstrates that the use of alternative data frequencies can identify differences in market reactions over time that can be related to production cycles and delays in price transmission.

scholarly journals Ethanol Prices and Agricultural Commodities: An Investigation of Their Relationship

Mathematics ◽  
2019 ◽  
Vol 7 (9) ◽  
pp. 774 ◽  
Author(s):  
David ◽  
Inácio ◽  
Tenreiro Machado
Keyword(s):  
Forecast Error ◽  
Error Variance ◽  
Price Transmission ◽  
Data Series ◽  
Agricultural Commodities ◽  
Vector Error Correction ◽  
Important Player ◽  
Forecast Error Variance ◽  
Price Relationship ◽  
Johansen Cointegration Test

Brazil is an important player when it comes to biofuel and agricultural production. The knowledge of the price relationship between these markets has increasing importance. This paper adopts several tools, namely the Bai–Perron test of breakpoints, the Johansen cointegration test and the vector error correction model exploited by the orthogonal impulse response and the forecast error variance decomposition, for investigating the price transmission among the ethanol and the main Brazil’s agricultural commodities (sugar, cotton, arabica coffee, robusta coffee, live cattle, corn and soybean). The data series cover the period from January 2011 up to December 2018. The results suggest a stronger price transmission from the ethanol commodity to the agricultural commodities, rather than the opposite situation.

scholarly journals Quantifying the Predictability and Efficiency of the Cointegrated Ethanol and Agricultural Commodities Price Series

2019 ◽  
Vol 9 (24) ◽  
pp. 5303
Author(s):  
Sergio Adriani David ◽  
Claudio M. C. Inácio ◽  
José António Tenreiro Machado
Keyword(s):  
Fossil Fuels ◽  
Raw Materials ◽  
Quantitative Measure ◽  
Efficiency Index ◽  
Environmental Benefits ◽  
Price Transmission ◽  
The Other ◽  
Fluctuation Analysis ◽  
Agricultural Commodities ◽  
Price Series

Ethanol is an energy commodity and a biofuel that has contributed to mitigate the use of fossil fuels. Nonetheless, the environmental benefits derived from the use of ethanol can occur at the expense of the agricultural commodities prices, affecting their volatilities and efficiency. This problem occurs because most of the raw materials currently used to produce biofuels, such as corn in the US, sugarcane in Brazil and oilseeds in Europe, are also important global commodities. This work adopts several mathematical tools, namely the Detrended Fluctuation Analysis, fractal dimension, and the Hurst and Lyapunov exponents. This set of tools measures the market efficiency and the prices’ predictability for the ethanol and some agriculture commodities that revealed price transmission (cointegration), in a previous work. The results show that, in general, the ethanol has a lower predictability horizon than the other commodities. Moreover, it is discussed a quantitative measure to assess the market performance, by means of the efficiency index. We observe that the ethanol efficiency is similar to the other agricultural commodities evaluated.

scholarly journals Transmission of global wheat prices to domestic markets in Kenya: A cointegration approach

2021 ◽  
Vol 16 (1) ◽  
pp. 80-93
Author(s):  
Jonathan Makau Nzuma ◽  
◽  
Patrick Kipruto Kirui ◽  
Keyword(s):  
Price Transmission ◽  
Infrastructure Development ◽  
Producer Price ◽  
Domestic Markets ◽  
Long Run ◽  
Domestic Prices ◽  
International Price ◽  
Pass Through ◽  
Liberal Trade ◽  
Wheat Price

This paper evaluates the extent to which changes in international wheat prices are transmitted to domestic markets in Kenya using an error correction model (ECM) that employs monthly producer price data for the period 2002 to 2020. Domestic wheat markets in Kenya were found to be strongly integrated while, international wheat markets were cointegrated with domestic prices at the port of Mombasa. The long-run elasticity of price transmission was estimated at 0.91, which implies that 91% of the changes in international wheat prices are transmitted to domestic markets in Kenya. The speed of adjustment was estimated at -0.069, which implies that it takes about 14 months for the changes in the international wheat price to be fully transmitted to the Kenyan domestic market. Wheat farmers in Kenya seem to be insulated from international price shocks given the long period of time it takes for domestic markets to adjust to international price changes. Even though not explicitly analysed, government border policies, market and infrastructure impediments seem to be underlying causes of the incomplete price pass-through, along with the low speeds of adjustments. Our analysis suggests that the main constraint to a complete pass-through is the existence of price-setting power at the producer level of the wheat market in Kenya. Investments in infrastructure development and the promotion of liberal trade policies can improve the transmission of international wheat price signals to domestic markets in Kenya.

Local Food Prices and International Price Transmission

2017 ◽  
Vol 96 ◽  
pp. 216-230 ◽  
Author(s):  
Eddy Bekkers ◽  
Martina Brockmeier ◽  
Joseph Francois ◽  
Fan Yang
Keyword(s):  
Local Food ◽  
Food Prices ◽  
Price Transmission ◽  
International Price

scholarly journals Price transmission in biofuel-related global agricultural networks

2021 ◽  
Vol 67 (No. 10) ◽  
pp. 399-408
Author(s):  
Karel Janda ◽  
Ladislav Krištoufek ◽  
Barbora Schererová ◽  
David Zilberman
Keyword(s):  
Fossil Fuels ◽  
Minimum Spanning Tree ◽  
Price Transmission ◽  
Set Covering ◽  
Financial Assets ◽  
Agricultural Commodities ◽  
Data Set ◽  
Production And Consumption ◽  
The Us ◽  
History Of

This article investigates the connections among the prices of biofuels, agricultural commodities and other relevant assets in Europe, the US, and Brazil. The analysis includes a comprehensive data set covering price data for 38 traded titles during the period from 2003 to 2020. We used the minimum spanning tree (MST) approach to identify price connections in a complex trading system. Our analysis of mutual price connections reveals the major defining features of world-leading biofuel markets. We provide the characteristics of the main bioethanol and biodiesel markets with respect to government policies and technical and local features of the production and consumption of particular biofuels. Despite a relatively long and dynamically evolving history of biofuels, the biofuel systems in the US, Brazil and Europe do not converge toward the same pattern of relations among fossil fuels, biofuels, agricultural commodities and financial assets.

Sign in / Sign up

Export Citation Format

Share Document