Price Volatility in the Food Markets

2011 ◽  
Author(s):  
Hilary Till
Keyword(s):  
Price Volatility ◽  
Food Markets

scholarly journals Volatility of agrarian markets aimed at the price development

2011 ◽  
Vol 57 (No. 1) ◽  
pp. 35-40 ◽  
Author(s):  
D. Matošková
Keyword(s):  
Supply And Demand ◽  
Price Volatility ◽  
Variation Coefficient ◽  
Food Markets ◽  
Price Development ◽  
Volatility Transmission ◽  
The World ◽  
Food Commodities ◽  
Market Shocks ◽  
The Stability

Significant price volatility has been observed at the world agri-food markets in these latter years. It has been caused by the triggers of the so-called market shocks that negatively influenced the stability of supply and demand of agri-food commodities. The contribution analyzes the causes of the price volatility incidence, it calls attention to the potential jeopardy of the price volatility transmission on the territory of Slovakia and it finds appropriate measures for its elimination. The price volatility of the Slovak agri-food commodities was reviewed pursuant to the variation coefficient calculation in three consecutive five-year intervals.

scholarly journals COVID-19 Drives Consumer Behaviour and Agro-Food Markets towards Healthier and More Sustainable Patterns

2020 ◽  
Vol 12 (20) ◽  
pp. 8366 ◽  
Author(s):  
Valeria Borsellino ◽  
Sina Ahmadi Kaliji ◽  
Emanuele Schimmenti
Keyword(s):  
Significant Proportion ◽  
Price Volatility ◽  
Financial Economic ◽  
Food Markets ◽  
Sustainable Food ◽  
Food Purchasing ◽  
Purchasing Behaviour ◽  
State Of Research ◽  
Consumer Habits ◽  
The Impact

This study examines the extant state of research into our understanding of the impact of the coronavirus pandemic in its early stages on food-purchasing behaviour. As such, it includes a summary and categorisation of the findings, extending to consumption preferences worldwide. After the indiscriminate stockpiling of food, which was witnessed in many countries following the implementation of the lockdown, the impact of COVID-19 (COronaVIrus Disease-2019) on consumer habits has inversely varied in function of personal attitudes, individual and household experiences, and characteristics. Specific contexts, and the financial, economic, and logistic nature of these contexts, have also been found to be of relevance in examining the research relating to the coronavirus pandemic and food-purchasing behaviour. Concurrent with the pandemic, some worldwide trends have emerged—home cooking has been rediscovered, leading to an increase in the demand for staple foodstuffs, and purchases from small, local retailers and online food shopping have been accorded preferential treatment. Despite price volatility and concern about future household incomes, a significant proportion of consumers have shifted to buying healthier, more sustainable food. Moreover, food wastage has seen a notable decrease in volume. Such an occasion should be strategically exploited by manufacturers and retailers in satisfying this consumer demand. Finally, the COVID-19 crisis would seem to offer an unparalleled opportunity to re-engineer the agro-food market by driving the transition toward more sustainable supply and production patterns. Thus, stronger and more equitable partnerships between farmers, manufacturers, retailers, and citizens may be in the process of being forged.

scholarly journals Food Price Volatility and Macroeconomic Factors: Evidence from GARCH and GARCH-X Estimates

2011 ◽  
Vol 43 (1) ◽  
pp. 95-110 ◽  
Author(s):  
Nicholas Apergis ◽  
Anthony Rezitis
Keyword(s):  
Government Intervention ◽  
Price Volatility ◽  
Food Prices ◽  
Food Price ◽  
Food Markets ◽  
Macroeconomic Factors ◽  
Short Run ◽  
Food Market ◽  
Positive Effect

This article examines food price volatility in Greece and how it is affected by short-run deviations between food prices and macroeconomic factors. The methodology follows the GARCH and GARCH-X models. The results show that there exists a positive effect between the deviations and food price volatility. The results are highly important for producers and consumers because higher volatility augments the uncertainty in the food markets. Once the participants receive a signal that the food market is volatile, this might lead them to ask for increased government intervention in the allocation of investment resources and this could reduce overall welfare.

scholarly journals Determinants of international price volatility transmissions: the role of self-sufficiency rates in wheat-importing countries

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Jin Guo ◽  
Tetsuji Tanaka
Keyword(s):  
Price Volatility ◽  
International Markets ◽  
Food Crisis ◽  
Conditional Correlation ◽  
Agricultural Commodity ◽  
Food Markets ◽  
Local Markets ◽  
Agricultural Prices ◽  
Self Sufficiency ◽  
Wheat Price

Abstract From the 1980s until the early 2000s, many developing governments adopted market liberalization policies due to relatively low agricultural prices and the implementation of structural programs by the IMF. Yet, a paradigm shift occurred with the emergence of the 2008 food crisis, which directed food-deficit governmental bodies to protectionist regimes supporting higher food self-sufficiency. Despite the importance of food autarky to shield domestic food markets, its effects have never been fully discussed in a formalized econometric framework. This article analyses wheat price volatility transmissions from global to local markets in 10 wheat importing countries, identifying the causality with conditional correlation functions (CCF), the degree of volatility transmissions using generalized autoregressive conditional heteroskedasticity (GARCH) models with the dynamic conditional correlation (DCC) specification and potential determinants with a panel analysis. The main findings reveal that a significant unidirectional Granger causality runs from international wheat price to local retail flour prices for wheat importing countries with an approximate five-month lag, the volatility correlations from international to local markets were strengthened around the period of the 2007–08 food crisis and a higher self-sufficiency rate plays a role in alleviating volatility passthroughs from international markets. This evidence that increasing the SSR of an agricultural commodity is effective in isolating the domestic market is valuable for policymakers in food importing countries. The primary beneficiaries of implementing the policy measure are risk-averse producers and consumers because their utility or welfare improves as the price volatility of foodstuffs declines.

scholarly journals Examining the determinants of global and local price passthrough in cereal markets: evidence from DCC-GJR-GARCH and panel analyses

2020 ◽  
Vol 8 (1) ◽  
Author(s):  
Jin Guo ◽  
Tetsuji Tanaka
Keyword(s):  
Food Security ◽  
Price Volatility ◽  
Least Square ◽  
Food Markets ◽  
Foreign Markets ◽  
Domestic Markets ◽  
Volatility Transmission ◽  
Self Sufficiency ◽  
Global And Local

AbstractExisting literature has not yet identified the common determinants of price volatility transmission in agricultural commodities from international to local markets and has rarely investigated the role of self-sufficiency measures in the context of national food security. We analyzed several factors to determine the degree of volatility transmission in wheat, rice and maize prices between world and domestic markets using GARCH models with dynamic conditional correlation specifications and panel feasible generalized least square models. Our findings indicate that a grain autarky system can reduce volatility passthroughs for three grain commodities. While the substitutive commodity consumption behaviour between maize and wheat buffers the volatility transmissions of both, rice does not function as a transmission-relieving element for the volatility implying that rice is not a substitute for wheat or maize consumption; grain consumption proves a more effective substitute than cereal self-sufficiency for insulating passthroughs from global markets. These findings may help the governments of developing nations to protect their domestic food markets from the uncertain movements of foreign markets and may thus improve food security.

Predicting Stock Market Performance

2020 ◽  
pp. 1-10
Author(s):  
Thomas Plieger ◽  
Thomas Grünhage ◽  
Éilish Duke ◽  
Martin Reuter
Keyword(s):  
Stock Market ◽  
Risk Taking ◽  
Life Stress ◽  
Price Volatility ◽  
Individual Characteristics ◽  
Self Report ◽  
Financial Behavior ◽  
Market Simulation ◽  
Stock Market Performance ◽  
Risk Taking Behavior

Abstract. Gender and personality traits influence risk proneness in the context of financial decisions. However, most studies on this topic have relied on either self-report data or on artificial measures of financial risk-taking behavior. Our study aimed to identify relevant trading behaviors and personal characteristics related to trading success. N = 108 Caucasians took part in a three-week stock market simulation paradigm, in which they traded shares of eight fictional companies that differed in issue price, volatility, and outcome. Participants also completed questionnaires measuring personality, risk-taking behavior, and life stress. Our model showed that being male and scoring high on self-directedness led to more risky financial behavior, which in turn positively predicted success in the stock market simulation. The total model explained 39% of the variance in trading success, indicating a role for other factors in influencing trading behavior. Future studies should try to enrich our model to get a more accurate impression of the associations between individual characteristics and financially successful behavior in context of stock trading.

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