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Wheat Prices (wheat + price)

Distribution by Scientific Domains

Humanities and Social Sciences	50%
Business, Economics, Finance and Accounting	50%

Selected Abstracts

Optimal Input Use When Inputs Affect Price and Yield

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 1 2003
Elwin G. Smith
Input use has been shown to impact the variance of output and therefore risk. When inputs affect both output level and the price of the output, the variance of revenue and profit depend on each effect and their interactions. We analyze the effect of nitrogen (N) use rate applied to wheat on the variance of yield, revenue, and the price of wheat, when protein premiums (discounts) are applied. We find that N use rate increases the variance of yield, but reduces the variance of price. The net effect of N use rate on revenue and profit is variance increasing, but the variance effect is less than for yield alone. Optimal rates of N are about 60% higher with protein payments compared with a constant wheat price over all protein levels. Risk-averse producers apply less N than risk-neutral producers but, because revenue and profit risk is lower with protein payments, the reduction in N is less than if based on a constant price over all protein levels. Il a été démontré que l'utilisation des intrants influe sur la variance des extrants, et par le fait même des risques. Lorsque les intrants influent tant sur le taux d'extrants que sur le prix de l'extrant, la variance des recettes et des profits dépendra de chacun des effets et de leurs interactions. Nous avons analysé les effets du taux d'utilisation de l'azote (N) dans la culture du blé sur la variance des rendements, des recettes et du prix du blé lorsque des primes en fonction du taux de protéines (rabais) sont accordées. Nous avons découvert que le taux d'utilisation de l'azote augmentait la variance des rendements, mais réduisait la variance des prix. L'effet net du taux d'utilisation de l'azote sur les recettes et les profits a été de faire augmenter la variance, mais l'effet de la variance s'est révélé inférieur â celui de la récolte seule. Des taux optimaux d'azote étaient supérieurs d'environ 60 p. 100 lorsque les paiements variaient en fonction du taux de protéines omparativement â un prix du blé uniforme qui ne tient pas compte du taux de protéines. Les producteurs peu enclins â prendre des risques utiliseront moins d'azote que les autres producteurs. Toutefois, le risque lié aux recettes et aux profits demeurant plus faible lorsque les paiements tiennent compte du taux de protéines, la réduction de l'azote est alors moindre que dans les cas où un prix constant est versé pour tous les taux de protéines. [source]

Optimising the policy cost of market stabilisation: Which commodity matters most in Ethiopia?

JOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 3 2009
Kindie Getnet
Abstract Unprecedented food crop price spikes in recent years prompted the Ethiopian government to impose grain export ban and to distribute grain stocks as price stabilization strategies. Successful price stabilization and size of public spending for such programs depend, to a large extent, on the choice and targeting of stabilization strategies. In a situation where a single commodity plays a leadership role in the price dynamics of other crops, targeting intervention at such a commodity would provide a useful mechanism to reduce policy cost of price stabilization while achieving commodity-wide stabilization objectives. Using multiple cointegration analysis techniques to generate knowledge useful in targeting price stabilization intervention, this study investigates whether there is a single food crop in Ethiopia, among the three major ones (teff, wheat, and maize), with an exclusive price leadership role in the price formation process of the rest. The results show that maize price plays a leadership role in the dynamics of teff and wheat prices at all markets studied, except that of Addis Ababa teff market. Given the major evidence of a price leadership role of maize, it might be possible to achieve commodity-wide price stabilization objectives through targeting intervention on maize. Such targeted intervention may also prove efficiency in terms of reducing policy cost and public spending. Copyright © 2008 John Wiley & Sons, Ltd. [source]

Price Dynamics in the International Wheat Market: Modeling with Error Correction and Directed Acyclic Graphs

JOURNAL OF REGIONAL SCIENCE, Issue 1 2003
David A Bessler
In this paper we examine dynamic relationships among wheat prices from five countries for the years 1981,1999. Error correction models and directed acyclic graphs are employed with observational data to sort,out the dynamic causal relationships among prices from major wheat producing regions: Canada, the European Union, Argentina, Australia, and the United States. An ambiguity related to the cyclic or acyclic flow of information between Canada and Australia is uncovered. We condition our analysis on the assumption that information flow is acyclic. The empirical results show that Canada and the U.S. are leaders in the pricing of wheat in these markets. The U.S. has a significant effect on three markets excluding Canada. [source]

Limited arbitrage in international wheat markets: threshold and smooth transition cointegration

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 3 2001
Stefano Mainardi
The strength of the adjustment towards arbitrage equilibrium can be expected to be somehow proportional to the extent of market price deviations from equilibrium. In this article, threshold and smooth transition cointegration models are applied to quarterly wheat prices of three major world suppliers over the period 1973,99. Results based on arranged autoregressions of the error term of a static regression do not prove to be robust. Although non-linear models relying on a multivariate system approach yield partly contradictory results, the main evidence from the latter suggests a weakening, rather than an outright inaction, of the adjustment process in the inner regime. [source]