To see the other types of publications on this topic, follow the link: Malawian agricultural commodity exchange.
Journal articles on the topic 'Malawian agricultural commodity exchange'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Malawian agricultural commodity exchange.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Gomez, Georgina, and Saskia Vossenberg. "Identifying ripple effects from new market institutions to household rules -Malawi’s Agricultural Commodity Exchange." NJAS - Wageningen Journal of Life Sciences 84 (March 2018): 41–50. http://dx.doi.org/10.1016/j.njas.2017.10.003.
Full text
2
Katengeza, Samson P., Barnabas Kiiza, and Julius Juma Okello. "The Role of ICT-Based Market Information Services in Spatial Food Market Integration." International Journal of ICT Research and Development in Africa 2, no. 1 (January 2011): 1–14. http://dx.doi.org/10.4018/jictrda.2011010101.
Full textAbstract:
The government of Malawi in 2004 initiated an ICT-based Malawi Agricultural Commodity Exchange (MACE), a market information service project, to improve access by farmers to market information. MACE was intended to improve the efficiency of agricultural markets as part of the strategy to improve food security. This study uses quantitative methods to examine whether MACE has contributed to efficiency of rice markets in Malawi. It especially tests if MACE has contributed to spatial integration of rice markets. As hypothesized, the study finds that the tendency of rice prices to move together in spatially separated markets has significantly increased since the implementation of MACE. It concludes that ICT-based market information services project enhances linkages between markets and can therefore improve the efficiency with which agricultural markets perform. The study discusses implications of this finding for policy.
3
Zuza, Emmanuel Junior, Kadmiel Maseyk, Shonil Bhagwat, Andrew Emmott, Will Rawes, and Yoseph Negusse Araya. "Review of Macadamia Production in Malawi: Focusing on What, Where, How Much Is Produced and Major Constraints." Agriculture 11, no. 2 (February 12, 2021): 152. http://dx.doi.org/10.3390/agriculture11020152.
Full textAbstract:
Macadamia is an essential commodity crop in Malawi. The nuts are a lucrative commodity and are used for household consumption, income generation among farming families and as a foreign exchange earning crop at country-level. Macadamia production in Malawi has increased significantly in recent years. Malawi is the seventh top producer of macadamia nuts valued at £23.5 million, with a global market share of 3%. In 2018, the country was the fourth-largest exporter of macadamia nuts that were valued at £18.2 million. The majority (90%) of this crop was grown by large commercial estates with smallholder’s production only contributing about 10% of the total crop production. However, the smallholder sector is vital for the future growth of the macadamia sector in the country. Further, Malawian smallholders consider macadamia production as a low-input crop with large returns per unit area (£10.7 kg−1 ha−1), and it thus a lucrative commodity with high potential for poverty reduction and wealth creation among these farming families. This paper, therefore, explores: (i) the historical and current trends in macadamia nut production in Malawi; (ii) analyses the country’s macadamia value chain focusing on smallholder farmer contributions; and (iii) discusses the constraints of smallholder macadamia production in Malawi for informed policymaking. We conclude that the synthesis of the Malawian macadamia sub-sector provides an understanding of the vital contributions of macadamia to Malawi’s economic growth and improvement of livelihoods.
4
Šicel, Mladen. "Development of commodity exchange in Croatia." Applied Studies in Agribusiness and Commerce 3, no. 1-2 (May 30, 2009): 87–89. http://dx.doi.org/10.19041/apstract/2009/1-2/11.
Full textAbstract:
Purpose of this thesis work is to show relevance and necessarity for existing of commodity exchange and it’s influence to the economy of Croatia. Because eastern part of Croatia, region called Slavonia is mostly agricultural oriented, it is of essential relevance to establish and make operate of first commodity exchange in Croatia. Widely in the past, while Croatia was part of Austrian – Hungarian kingdom, first commodity exchange in Europe that was established in 1853. in Budapest, practically was domestic commodity exchange for Croatian business subjects, and they were able to use benefits it brought. Me personally, and a lot of other business people and business society in Croatia belive that time to reasteblish commodity exchange has come. In this thesis, I will give a deeper look in to commodity exchange, describe acctual situation in Croatia, show posibillities that commodity exchange brings, how it works and what has to be done to implement commodity exchange and benefits it will bring to Croatian economy.
5
Herlina, Marizsa. "PANEL COINTEGRATION ANALYSIS IN DETERMINING RELATIONSHIP OF AGRICULTURAL COMMODITY AND OIL FUEL PRICE IN INDONESIA." Indonesian Journal of Statistics and Its Applications 4, no. 2 (July 31, 2020): 341–58. http://dx.doi.org/10.29244/ijsa.v4i2.662.
Full textAbstract:
This paper contributes to explain the relationship between oil fuel prices, oil price, the exchange rates, and agricultural commodity prices in Indonesia by using panel cointegration. Thus, this paper studied the short- and long-run relationships between oil fuel prices, oil prices, exchange rates, and agricultural commodity prices using the panel cointegration and causality analysis on five main agricultural commodities in Indonesia (i.e. rice, beef, palm oil, red chili, and sugar). The study was conducted using weekly agricultural, oil fuel, oil prices, and exchange rates from October 2014 until May 2016. The results showed that the oil fuel prices and the exchange rate had a long-run impact on agricultural commodity prices. The direction of the causality had also been determined. The oil fuel prices, oil prices, and exchange rate altogether had a unidirectional Granger causality to all of the agricultural commodity prices except beef and palm oil prices in the long-run.
6
Sitko, Nicholas J., and T. S. Jayne. "Why are African commodity exchanges languishing? A case study of the Zambian Agricultural Commodity Exchange." Food Policy 37, no. 3 (June 2012): 275–82. http://dx.doi.org/10.1016/j.foodpol.2012.02.015.
Full text
7
Thompson, Stanley R., and Gary E. Bond. "Offshore Commodity Hedging under Floating Exchange Rates." American Journal of Agricultural Economics 69, no. 1 (February 1987): 46–55. http://dx.doi.org/10.2307/1241305.
Full text
8
Han, Qing Bin, and Hai Li Shi. "Comparison on Turnovers of Agricultural Products Futures Based on Hilbert-Huang Transform." Advanced Materials Research 989-994 (July 2014): 2713–18. http://dx.doi.org/10.4028/www.scientific.net/amr.989-994.2713.
Full textAbstract:
In order to distinguish the different patterns and evolving trends on turnovers of agricultural products futures between Zhengzhou Commodity Exchange (Z-CE) and Dalian Commodity Exchange (D-CE), a novel time-frequency analysis approach, i.e. Hilbert-Huang transform (HHT), is investigated in this paper. Firstly, Hilbert-Huang transform is briefly introduced. Secondly, two different non-stationary signals of turnover of agricultural products futures from 2009 to 2013 coming from Z-CE and D-CE are described in Empirical Mode Decomposition (EMD). With these results, the two signals are distinctly different from each other. It is proved that the technique of HHT is effective for the purpose of distinction of turnover of agricultural products futures in commodity exchanges.
9
Gupta, Sumeet, and Vinay Kandpal. "HEDGING IN AGRICULTURAL COMMODITIES." Journal of Global Economy 14, no. 4 (November 8, 2018): 41–50. http://dx.doi.org/10.1956/jge.v14i4.496.
Full textAbstract:
The Indian Agriculture Sector is on the edge of a rebellion that will revolutionize the complete food chain by means of the total food production in India is expected to twofold in the following ten years. Outstanding export projections, competitive pricing of agricultural products that are internationally comparable has created trade prospects in the agro industry. Agricultural Output is expected to grow by 11% in 2018-2019 after recording a 8-9 % increase in the previous years. It will create Indian Agriculture Industry Gateway by which exporter and importer can fulfill their requirement and reap the benefits of agro related opportunities. MCX (Multi Commodity Exchange) and NCDEX (National Commodity Derivatives Exchange) has developed opportunities for trading in spot and forward trade. It will help to develop India as Agricultural Based Economy. Trading of agricultural commodities help the traders to take the advantage of Price Fluctuations but also faces Investment Risk and Price Risk. Movement in future prices create the possibility for short
10
Frechette, Darren L. "The Potential Value of Agricultural Trade Options." Agricultural and Resource Economics Review 32, no. 2 (October 2003): 232–43. http://dx.doi.org/10.1017/s1068280500006006.
Full textAbstract:
Hedgers located far from organized commodity exchanges suffer a mismatch between their local prices and exchange prices. Futures and options traded on the exchange may still be valuable to distant hedgers, but only to the extent that basis risk is small. Forward contracting allows hedgers to manage risk using a local delivery price, but the Commodity Futures Trading Commission has long banned the sale of off-exchange options, limiting the opportunities available to hedgers. Recently, agricultural trade options (ATOs) have been introduced as over-the-counter option products designed specifically for hedgers. To date, ATOs have found little interest from potential sellers, but the potential demand for these options may be substantial. This study develops a methodology for measuring the potential value of ATOs. It describes and quantifies the demand for corn ATOs by dairy farms in Pennsylvania and estimates the value these farms might place on ATO contracts offered locally.
11
Makrop Daniel, Dangok, and Ige Olaoluwa Tosin. "Exchange Rate Volatility and Agricultural Commodity Prices i Nigeria (2000-2018)." International Journal of Business, Economics and Management 7, no. 5 (2020): 290–300. http://dx.doi.org/10.18488/journal.62.2020.75.290.300.
Full text
12
Khoury, Nabil, and Pierre Yourougou. "Determinants of agricultural futures price volatilities: Evidence from winnipeg commodity exchange." Journal of Futures Markets 13, no. 4 (June 1993): 345–56. http://dx.doi.org/10.1002/fut.3990130403.
Full text
13
Sarassoro, Gboroton F., and Raymond M. Leuthold. "Offshore Commodity Hedging Under Floating Exchange Rates: Comment." American Journal of Agricultural Economics 70, no. 3 (August 1988): 724–26. http://dx.doi.org/10.2307/1241511.
Full text
14
Thompson, Stanley R., and Gary E. Bond. "Offshore Commodity Hedging under Floating Exchange Rates: Reply." American Journal of Agricultural Economics 70, no. 3 (August 1988): 727–28. http://dx.doi.org/10.2307/1241512.
Full text
15
Harri, Ardian, Lanier Nalley, and Darren Hudson. "The Relationship between Oil, Exchange Rates, and Commodity Prices." Journal of Agricultural and Applied Economics 41, no. 2 (August 2009): 501–10. http://dx.doi.org/10.1017/s1074070800002959.
Full textAbstract:
Exchange rates have long been thought to have an important impact on the export and import of goods and services, and, thus, exchange rates are expected to influence the price of those products that are traded. At the same time, energy impacts commodity production in some very important ways. The use of chemical and petroleum derived inputs has increased in agriculture over time; the prices of these critical inputs, then, would be expected to alter supply, and, therefore, the prices of commodities using these inputs. Also, agricultural commodities have been increasingly used to produce energy, thereby leading to an expectation of a linkage between energy and commodity markets. In this paper, we examine the price relationship through time of the primary agricultural commodities, exchange rates, and oil prices. Using overlapping time periods, we examine the cointegration relationship between prices to determine changes in the strength of the linkage between markets through time. In general, we find that commodity prices are linked to oil for corn, cotton, and soybeans, but not for wheat, and that exchange rates do play a role in the linkage of prices over time.
16
Yeboah, Osei, Saleem Shaik, and Albert Allen. "Exchange Rates Impacts on Agricultural Inputs Prices using VAR." Journal of Agricultural and Applied Economics 41, no. 2 (August 2009): 511–20. http://dx.doi.org/10.1017/s1074070800002960.
Full textAbstract:
The effects of the U.S. dollar exchange rate versus the Mexican peso are evaluated for four traded nonfarm-produced inputs (fertilizer, chemicals, farm machinery, and feed) in the U.S. Unit root tests suggest that the exchange rate and the four input price ratios support the presence of unit roots with a trend model but the presence unit roots can be rejected in the first difference model. This result is consistent with a fixed price/flex price conceptual framework, with industrial prices more likely to be unresponsive to the exchange rate than farm commodity prices.
17
PODSOKHA, Anna. "ORGANIZATIONAL AND ECONOMIC MODEL OF EFFECTIVE FUNCTIONING OF THE COMMODITY EXCHANGE MARKET OF UKRAINE." Ukrainian Journal of Applied Economics 4, no. 4 (October 30, 2019): 306–13. http://dx.doi.org/10.36887/2415-8453-2019-4-34.
Full textAbstract:
Introduction. The low level of development of commodity exchange trade in Ukraine remains a rather acute issue in the domestic economy for a long time. This indicates the need to find new ways to improve the activities of exchanges. The purpose of the scientific research is to generalize the theoretical aspects of the formation of organizational and economic model of effective functioning of the commodity exchange market in Ukraine. Results. It is established that grain is a typical commodity on the domestic stock market. The functions of the exchange are defined. The world tendencies of exchange trade development are characterized. The state of the domestic stock market is studied. The state role in regulating the activity of exchanges is highlighted. The essence, tasks and principles of the wholesale grain market are defined. The existence of favorable economic conditions for the organization of regional wholesale grain markets is substantiated. The administrative component of operational management of the wholesale market is characterized. The measures for the organization of wholesale grain markets at the regional level have been identified. The dominance of the shadow market in the sale of agricultural products is indicated. The directions of institutional transformations at the regional level to increase the effectiveness of economic reforms in the agriculture field are identified. The necessity of the new technological basis introduction of agricultural products realization – electronic auctions is substantiated. Prospects for the electronic bidding introduction are outlined. The relations model for regulation of the wholesale market of agricultural products at the regional level is characterized. Organizational and economic measures for the implementation of this model in domestic practice are proposed. The priority task of state regulation in exchange trade of agricultural products is highlighted. Conclusions. The use of the model of development and regulation of the regional wholesale market of agricultural products will contribute to the development of the commodity exchange market, reduce the share of the shadow sector of the economy, replenish budget funds to finance producers in agriculture. Key words: commodity exchange, organizational and economic model, exchange market, wholesale grain market, electronic trading, state regulation.
18
Fernandez, Cledwyn Primus Savio. "Futures Trading in Agricultural Commodities: Effects of the Ban on Selected Commodities in India." Artha - Journal of Social Sciences 12, no. 4 (October 18, 2013): 61. http://dx.doi.org/10.12724/ajss.27.5.
Full textAbstract:
The commodity market is one of the emerging markets in today‟s economy. Given that inflation is increasing alarmingly and the emergence of risk in all activities, the commodity market has a phenomenal contribution to the overall economy of India. The following paper – Futures Trading in Agricultural Commodities: Effects of the ban on selected commodities in India shall focus on the impact of hedging (risk management) and price discovery, which are two major aspects under the agricultural commodity market. Secondary data from two main sources namely the Multi Commodity Exchange Market and National Commodity Derivatives Exchange were used for analysis. The ban on futures trading under agricultural commodities that was implemented by the Government of India shall be dealt with specifically taking seven commodities – Wheat, Rice, Sugar, Chickpea, Potato, Rubber and Guar Seeds. The common element between all these commodities is that they were all banned from futures trading at some point of time or the other. An analysis using econometric and statistical tools shall be performed to check whether there exists any sort of relationship between the ban and the prevailing inflation in the economy and also the correlation between the prices before and after ban. This is purely an explanatory study wherein the strategies for buyers and sellers in the futures market will also be discussed.Keywords: Hedging, ban, futures trading, inflation
19
BLAHODATNYI, Andrii. "COMMODITY EXCHANGE AS AN INNOVATION-INSTITUTIONAL ELEMENT OF THE DEVELOPMENT OF INTERNATIONAL COMMODITY MARKETS." Ukrainian Journal of Applied Economics 4, no. 4 (October 30, 2019): 52–59. http://dx.doi.org/10.36887/2415-8453-2019-4-6.
Full textAbstract:
The article examines the role of the commodity exchange as an innovative and institutional element in the development of international commodity markets. The current trends in the development of the international commodity stock market have been determined, compared to the volumes of world futures and options for 2018-2019, the number of outstanding contracts and their changes have been investigated. The transformation processes inherent in the international commodity exchange are considered and characterized. The structure of the international stock market by geographical regions is reflected. Trading volumes in different regions of 2019 are compared to 2018. Analysis of futures, options index of the capital index, interest rate trading, energy futures, options trading and precious metals trade have been done. The results of the world's largest stock exchanges by volume of trading in 2018-2019 are presented. One of the criteria examined is the volume of trading on the Intercontinental Exchange, which is due to the lower level of activity on all its subsidiaries in Europe, North America and the Asia-Pacific region. The current state of stock exchange trade in Ukraine is analysed, examples of obstacles for the effective functioning of stock exchanges of Ukraine are given. The development of commodity exchanges in Ukraine over recent years is considered, with an indication of the tendency of their development. Examples of commodities are indicated that will be used for the development of the commodity stock market of Ukraine. The statistical information on the number and structure of exchanges by specialization, their characteristics and role are investigated. The conclusions on the stock role market in an economy have been formed. The international experience of trading on the exchanges is generalized. The evolution of the stock market from the fair to the modern electronic stock market with its advantages and convenience is noted. The conclusions of the development of stock exchange trade in Ukraine are summarized: namely obstacles to its development and misunderstanding of advantages. Suggestions for successful development of stock exchange trading are given in accordance with world experience and national peculiarities. Key words: commodity exchange, futures, option, stock trading, international commodity exchanges, agricultural products, market infrastructure, stock exchange.
20
Bhar, Ramaprasad, and Shigeyuki Hamori. "Component structures of agricultural commodity futures traded on the Tokyo Grain Exchange." Asia-Pacific Financial Markets 13, no. 1 (February 13, 2007): 1–9. http://dx.doi.org/10.1007/s10690-007-9032-2.
Full text
21
Wei, Ching-Chun. "Empirical Analysis of “Volatilitysurprise” between Dollar Exchange Rate and CRB Commodity Future Markets." International Journal of Economics and Finance 8, no. 9 (August 24, 2016): 117. http://dx.doi.org/10.5539/ijef.v8n9p117.
Full textAbstract:
This paper used the five multivariate GARCH models (including BEKK, CCC, DCC, VARMA-CCC and VARMA-DCC) to analyze the mean and volatility interaction of volatility surprise between US dollar exchange and CRB future index (including agricultural, energy, commodity and precious metal equity index). The empirical findings exhibit that significant own short and long-term persistence effects and the cross-markets volatility surprise spillover short and long-term persistence effects between dollar exchange rate and CRB commodity future equity index markets in five multivariate GARCH models. Besides that, the residual diagnostic test indicated that VARMA-DCC models is the best suitable model to modeling the dollar exchange rate with CRB commodity equity index.
22
Efrinaldi, Efrinaldi. "POLA TRANSAKSI PADA COMMODITY EXCHANGE : Perspektif Hukum Islam." Al-Istinbath : Jurnal Hukum Islam 2, no. 2 (December 27, 2017): 197. http://dx.doi.org/10.29240/jhi.v2i2.283.
Full textAbstract:
Transactions on commodity exchange as futures trading are seen from the contract cycles as a pure trade activity, reduce the risk of profit from buying and selling, as a result of price fluctuations on trading commodities. Price fluctuations can be predicted and transactions begin with analysis, while risk can be protected.
The type of transaction on physical goods and the spot market, in the perspective of Islamic economic law, can be tolerated. Certain types of trade (al-tijarah) have been arranged in syara ', because indeed the forms of transactions in such trades have been tolerated in the time of the Prophet. Spot markets, such as transactions of agricultural products, livestock, minerals, handicrafts, industry, and so forth. While transactions service that are non-physical, eg rent (al-ujrah) and wage-hire (al-ijarah).
The aim of trade is essentially objects of economic value with the availability of goods in aqad assemblies (at the time of the transaction). In the Islamic review, this also applies to items that are not available or without presenting the goods at the time of the transaction, provides the ordered item is concrete of its nature. This is non-existent form of trade (such as al-salam), in Islamic law studies, depends on seller's effective control and ability to deliver. There is a protection against the value of goods transacted from probabilities that are inconsistent with the properties specified in the aqad assemblies, protection against the interests of consumer from loss (cut loss) and no disappointment in the future. In futures trading, it is known as the term of hedging
23
Yanikkaya, H., H. Kaya, and O. M. Kocturk. "The effect of real exchange rates and their volatilities on the selected agricultural commodity exports: A case study on Turkey, 1971–2010." Agricultural Economics (Zemědělská ekonomika) 59, No. 5 (May 28, 2013): 235–46. http://dx.doi.org/10.17221/122/2012-agricecon.
Full textAbstract:
This study investigates the effect of the exchange rate volatility and the real exchange rate on the bilateral agricultural exports flows of Turkey to 46 countries. A panel data set, which contains 46 cross-sections and 1840 observations, is used for exports of the selected agricultural commodities to countries from 1971 to 2010. Our empirical results based on a gravity equation show that while the exchange rate volatility does not exert a significant effect on the Turkish agricultural commodity exports, the real exchange rate has a statistically significant effect on the agricultural commodity export flows. Regardless of the region chosen, raisins and tobacco exports are very much sensitive to the real exchange rates. It means that any depreciation in the Turkish Lira leads to higher exports for these commodities. We have also some interesting results on other commodities. Exports of dried figs show no sensitivity to the exchange rate or its volatilities, except for the EU countries. For the full sample, exports of citrus, grape and hazelnuts increases as the TL depreciates. The sensitivity of hazelnut to the real exchange rates varies among regions.
24
Gupta, Shashi, Himanshu Choudhary, and D. R. Agarwal. "Hedging Efficiency of Indian Commodity Futures." Paradigm 21, no. 1 (June 2017): 1–20. http://dx.doi.org/10.1177/0971890717700529.
Full textAbstract:
This article examines the hedge ratio and hedging effectiveness in agricultural (castor seed, guar seed) and non-agricultural (copper, nickel, gold, silver, natural gas and crude oil) commodities traded in National Commodity and Derivative Exchange (NCDEX) and Multi Commodity Exchange (MCX), respectively. Constant and dynamic hedge ratios are estimated by using ordinary least square (OLS), vector autoregression (VAR), vector error correction model (VECM) and vector autoregressive-multivariate generalized autoregressive conditional heteroskedasticity model (VAR-MGARCH). The results of constant as well as dynamic hedge ratios reveal that the Indian futures market provides higher hedging effectiveness in case of precious metal (65–75 per cent) compared to industrial metal and energy commodities (less than 50 per cent). Hedging effectiveness for castor seed and natural gas is even lower than 10 per cent. This study concluded that VECM and VAR-MGARCH both are providing higher hedging although VECM is providing the highest hedge ratio. It has been found that the next to near month futures provide better hedging effectiveness as compared to near month futures for crude oil and silver. It is recommended that the policy makers should pay attention towards the number of delivery centres, standard of quality of underlying assets and transaction costs in spot market.
25
Kovacevic, Vlado, and Isidora Milosevic. "Significance and development preconditions of commodity exchange trade with agricultural products in Serbia." Skola biznisa, no. 2 (2017): 172–78. http://dx.doi.org/10.5937/skolbiz2-14320.
Full text
26
J. Verteramo Chiu, Leslie, and Calum G. Turvey. "Cross market price support and agricultural development." Journal of Risk Finance 15, no. 1 (January 28, 2014): 33–51. http://dx.doi.org/10.1108/jrf-05-2013-0038.
Full textAbstract:
Purpose – This paper aims to develop a market-driven mechanism for commodity price insurance in developing countries lacking access to futures markets or other forms of hedging products. Design/methodology/approach – The model incorporates futures, exchange rate and local basis risk under the Black-Scholes framework to develop quanto (quantity adjusting option). When the domestic price of a commodity in a developing country is strongly correlated to the price in a futures market, price support premiums can be estimated. The authors use daily corn futures prices, exchange rate MXP/USD, and prices of corn and sorghum at several locations in Mexico. Findings – The authors calculated the price insurance premium at various local markets in Mexico for corn and sorghum. The results are consistent with those for the USA, showing that relative price premiums are similar. Research limitations/implications – The results provide a benchmark to estimate the net welfare effects of government programs for agricultural price support. Practical implications – The model shows that privately provided agricultural price insurance is feasible under certain conditions for developing countries without an established futures market. Originality/value – This paper provides market-based agricultural options in Mexico which contributes to the existing government price support program.
27
Dang, Trung Tuyen, Caihong Zhang, Thi Hong Nguyen, and Ngoc Trung Nguyen. "Assessing the influence of exchange rate on agricultural commodity export price: evidence from Vietnamese coffee." Journal of Economics and Development 22, no. 2 (September 8, 2020): 297–309. http://dx.doi.org/10.1108/jed-02-2020-0014.
Full textAbstract:
PurposeThe purpose of this paper is to evaluate the influence of VND/USD exchange rate on Vietnamese coffee export price (PVN).Design/methodology/approachThe study uses cointegration test, Granger causality test and vector autoregression (VAR) model.FindingsThe results reveal that there is no co-integrating equation between two variables. It means the exchange rate does not have an effect on PVN in the long run. Furthermore, there is one Granger causality relationship between VND/USD exchange rate and PVN in the short run, but not vice versa. The study suggests that the first previous period of PVN is the most closely related variable which has the greatest impact on the variation of PVN among the selected variables, meanwhile the effect of VND/USD exchange rate on it, contrarily, is positive and very trivial.Originality/valueIn overall, the impact of VND/USD exchange rate on Vietnamese coffee export price (PVN) has been analyzed deeply in this research by applying new approaches.
28
Rosson, C. Parr. "Discussion: Exchange Rates, Energy Policy and Outcomes in Agricultural Markets." Journal of Agricultural and Applied Economics 41, no. 2 (August 2009): 529–30. http://dx.doi.org/10.1017/s1074070800002984.
Full textAbstract:
These three invited papers examine the role that exchange rates may have in influencing commodity prices, input prices and farm income. The papers arguably represent one of the most important recent attempts to quantify and explain these new linkages. As U.S. and world agriculture moves from a period of high output prices to a period of lower prices, understanding the impact of macroeconomic variables on farm input costs and farm income will become more important. Further, it will be equally important for policy makers to undertake appropriate market interventions in order to have maximum effectiveness should this period of cost-price-squeeze continue to intensify. Each of the papers has something significant to contribute to the understanding and debate of these new linkages between agriculture, the macroeconomic environment, and the energy sector.
29
Francesconi, G. N., and N. Heerink. "Ethiopian Agricultural Cooperatives in an Era of Global Commodity Exchange: Does Organisational Form Matter?" Journal of African Economies 20, no. 1 (October 8, 2010): 153–77. http://dx.doi.org/10.1093/jae/ejq036.
Full text
30
Jabara, Cathy L., and Nancy E. Schwartz. "Flexible Exchange Rates and Commodity Price Changes: The Case of Japan." American Journal of Agricultural Economics 69, no. 3 (August 1987): 580–90. http://dx.doi.org/10.2307/1241693.
Full text
31
Čermáková, Klára, and Eduardo Aguiar Henrique Filho. "Effects of Expansionary Monetary Policy on Agricultural Commodities Market." Sustainability 13, no. 16 (August 19, 2021): 9317. http://dx.doi.org/10.3390/su13169317.
Full textAbstract:
Agricultural commodities experienced a rise in prices during the first decade of the 2000s. The literature shows that the monetary policies adopted by developed economies can influence practically all economic indicators of developing markets. This paper aims to evaluate the effect of selected monetary policy measures on the prices of three selected agricultural commodities: soy, corn and sugar. Secondly, the study analyzes the price formation of these commodities during a period of expansionary monetary policy, in order to better understand how they are influenced by unconventional instruments. The central hypothesis is that the excessive liquidity created by the FED spills over to emerging economies, boosting investment and consumption there and, lastly, causing a commodity cycle. Our data (January 2000–December 2019) support this hypothesis and prove that expansionary monetary policy is capable of impacting agricultural commodities’ prices, but by different channels, due to the specificities of each commodity. The fact that people have more capital due to the credit obtained from loans seems to influence the price of sugar; soy is highly influenced by exchange rates of emerging markets, and corn is not very responsive to the used variables, which might be due to the high production rates of this commodity in the U.S. and the protectionist policies adopted by the government.
32
Baek, Jungho, and Won W. Koo. "On the Dynamic Relationship between U.S. Farm Income and Macroeconomic Variables." Journal of Agricultural and Applied Economics 41, no. 2 (August 2009): 521–28. http://dx.doi.org/10.1017/s1074070800002972.
Full textAbstract:
This study examines the short- and long-run effects of changes in macroeconomic variables—agricultural commodity prices, interest rates and exchange rates—on the U.S. farm income. For this purpose, we adopt an autoregressive distributed lag (ARDL) approach to cointegration with quarterly data for 1989–2008. Results show that the exchange rate plays a crucial role in determining the long-ran behavior of U.S. farm income, but has little effect in the short-run. We also find that the commodity price and interest rate have been significant determinants of U.S. farm income in both the short- and long-run over the past two decades.
33
Shane, Mathew, Terry Roe, and Agapi Somwaru. "Exchange Rates, Foreign Income, and U. S. Agricultural Exports." Agricultural and Resource Economics Review 37, no. 2 (October 2008): 160–75. http://dx.doi.org/10.1017/s1068280500002975.
Full textAbstract:
While it is generally accepted that change in the real value of the dollar is an important determinant of exports, it has not been rigorously demonstrated that this relationship, derivable from theory, holds empirically for agricultural exports and the components of agricultural exports. Starting with a dynamic maximizing framework, this paper estimates the real trade-weighted exchange rate and trade partner income effects on U. S. agricultural exports. For the period 1970–2006, a one percent annual increase in trade partners’ income is found to increase total agricultural exports by about 0. 75 percent, while a one percent appreciation of the dollar relative to trade partner trade-weighted currencies decreases total agricultural exports by about 0. 5 percent. While these effects carry over to 12 commodity subcategories, they are conditioned by differences between bulk and high value commodities, and differences in the export demand from high compared to low income countries. We use a directed acyclic graphs (DAG) technique to identify the inverted fork causal relationships from vector autoregression (VAR) models. We also find that there is an asymmetric exchange rate effect so that the negative effect of exchange rate appreciation on exports sometimes dominates the positive effect of foreign income growth.
34
Horlachuk, Mykola. "Development of the exchange market for agricultural products: current trends and challenges." ED/2019/1, no. 1 (March 2019): 102–14. http://dx.doi.org/10.36742/2410-0919-2019-1-12.
Full textAbstract:
Introduction. The development of the stock market of agricultural products is one of the important theoretical and practical problems of modern economic science and is the result of the effective implementation of economic policy. So far, an agreed theoretical and methodological approach to the interpretation of the stock market as an economic category, as well as its importance and role in the system of coordinates of the modern economic paradigm has not been formed, which determined the relevance of the topic. Methods. The research is carried out on the basis of the use of the dialectical method, as well as specific methods of conducting research in the framework of methodological tools of modern economic science, in particular, methodological approaches of the Association of the futures industry, which are used in the study of stock market derivatives. Results The article substantiates the main stages of the evolutionary development of the world stock market and the problem of the establishment of an effective exchange mechanism for the implementation of agricultural products in Ukraine. The peculiarities of the global development of the exchange market of agricultural products are revealed, on the basis of actual economic data, its key tendencies are determined and the hypothesis about the formation of a qualitatively new stage of the functioning of the world stock market, in particular, the market of commodity derivatives for agricultural products, is outlined. The role and place of the domestic stock market of agricultural products is highlighted in general terms, some aspects of its perspective development in Ukraine are outlined. Discussion. In the context of the possible priorities of designing a modern exchange mechanism, the advantages and economic consequences of the formation of a transparent exchange market of agricultural products are identified: transparency of market relations, reduction of transaction costs, strengthening the process of concentration of the market environment, reducing its asymmetry and stimulating the increase of the efficiency of the functioning of the agrarian market, in general. Keywords: exchange, stock market of agricultural products, commodity derivatives, futures, options, stock trading.
35
R L, Manogna, and Aswini Kumar Mishra. "Price discovery and volatility spillover: an empirical evidence from spot and futures agricultural commodity markets in India." Journal of Agribusiness in Developing and Emerging Economies 10, no. 4 (May 23, 2020): 447–73. http://dx.doi.org/10.1108/jadee-10-2019-0175.
Full textAbstract:
PurposePrice discovery and spillover effect are prominent indicators in the commodity futures market to protect the interest of consumers, farmers and to hedge sharp price fluctuations. The purpose of this paper is to investigate empirically the price discovery and volatility spillover in Indian agriculture spot and futures commodity markets.Design/methodology/approachThis study uses Granger causality, vector error correction model (VECM) and exponential generalized autoregressive conditional heteroskedasticity (EGARCH) to examines the price discovery and spillover effects for nine most liquid agricultural commodities in spot and futures markets traded on National Commodity and Derivatives Exchange (NCDEX).FindingsThe VECM results show that price discovery exists in all the nine commodities with futures market leading the spot in case of six commodities, namely soybean seed, coriander, turmeric, castor seed, guar seed and chana. Whereas in case of three commodities (cotton seed, rape mustard seed and jeera), price discovery takes place in the spot market. The Granger causality tests indicate that futures markets have stronger ability to predict spot prices. Supporting these, the results from EGARCH volatility test reveal that there exist mutual spillover effects on futures and spot markets. Thus, it could be inferred that futures market is more efficient in price discovery of agricultural commodities in India.Research limitations/implicationsThese results can help the market participants to benefit by hedging out the uncertainty and the policymakers to design futures contracts to improve the efficiency of the agricultural commodity derivatives market.Practical implicationsThe findings provide fresh view on lead–lag relationship between future and spot prices using the latest data confirming that futures market indeed is dominant in price discovery.Originality/valueThere are very few studies that have explored the efficiency of the agricultural commodity spot and futures markets in India using both price discovery and volatility spillover in a detailed manner, especially at the individual agriculture commodity level.
36
Wambugu, Conrad, and James Ngang’a. "RELATIONSHIP BETWEEN OIL PRICES, EXCHANGE RATES AND MAIZE PRICES IN KENYA." International Journal of Finance 2, no. 1 (February 2, 2017): 88. http://dx.doi.org/10.47941/ijf.44.
Full textAbstract:
Purpose: The purpose of this study was to determine the Relationship between oil prices, Exchange rates and maize prices in KenyaMethodology: The study adopted exploratory and descriptive design. Exploratory research was used to understand the relationships among the variables of this research. Descriptive research was used to understand the current situation. The population used for the 3 variables are; Abu Dhabi National Oil Corporation (ADNOC) crude oil prices for oil prices, Central Bank of Kenya for KES/USD exchange rates and Food Agricultural Organization (FAO) Nairobi (due to missing data for Eldoret) wholesale maize prices per metric ton for maize prices.Results: The study findings revealed that these three markets namely the crude oil market, the foreign exchange market and the commodity market have separate risk management dynamics and should be administered individually. Central Bank of Kenya prudential guidelines (2008) on risk management that came into effect this year, mandate financial institutions to use derivatives to manage risk by using different kinds of instruments like foreign exchange derivatives interest rate derivatives, commodity based derivatives etc. though implementation has not started. However, current risk management strategies in the financial market allow for hedging against adverse movement in foreign exchange market. This would drastically reduce the costs of imports especially petroleum products and its derivatives that go into production.Policy recommendation: The study recommended creation of a commodity exchange that would add value to commercial participants such as farmers and millers with benefits accruing to consumers. This could prove difficult in the beginning especially in policy guidelines and implementation but would prove worthwhile in the end. Some of the steps taken towards a fully-fledged commodity exchange is the introduction of the Warehouse Receipt System (WRS). This allows farmers to concentrate on farming as they store their produce for future selling and also as security for loans in commercial banks.Procurement policies should be reviewed especially in regards to the oil sector. Although the government through the Kenya Gazette, 2012 has granted a 30% import quota of refined petroleum products to oil marketer National Oil Corporation of Kenya and 100% import quota of crude oil to Kenya Petroleum Refinery Limited (KPRL) hence giving them volumes needed to hedge in the international market, steps should be taken to widen the scope of players to involve the private sector to participate. Keywords: Relationship, oil price, Exchange rates and maize prices in KenyaPurpose: The purpose of this study was to determine the Relationship between oil prices, Exchange rates and maize prices in KenyaMethodology: The study adopted exploratory and descriptive design. Exploratory research was used to understand the relationships among the variables of this research. Descriptive research was used to understand the current situation. The population used for the 3 variables are; Abu Dhabi National Oil Corporation (ADNOC) crude oil prices for oil prices, Central Bank of Kenya for KES/USD exchange rates and Food Agricultural Organization (FAO) Nairobi (due to missing data for Eldoret) wholesale maize prices per metric ton for maize prices.Results: The study findings revealed that these three markets namely the crude oil market, the foreign exchange market and the commodity market have separate risk management dynamics and should be administered individually. Central Bank of Kenya prudential guidelines (2008) on risk management that came into effect this year, mandate financial institutions to use derivatives to manage risk by using different kinds of instruments like foreign exchange derivatives interest rate derivatives, commodity based derivatives etc. though implementation has not started. However, current risk management strategies in the financial market allow for hedging against adverse movement in foreign exchange market. This would drastically reduce the costs of imports especially petroleum products and its derivatives that go into production.Policy recommendation: The study recommended creation of a commodity exchange that would add value to commercial participants such as farmers and millers with benefits accruing to consumers. This could prove difficult in the beginning especially in policy guidelines and implementation but would prove worthwhile in the end. Some of the steps taken towards a fully-fledged commodity exchange is the introduction of the Warehouse Receipt System (WRS). This allows farmers to concentrate on farming as they store their produce for future selling and also as security for loans in commercial banks.Procurement policies should be reviewed especially in regards to the oil sector. Although the government through the Kenya Gazette, 2012 has granted a 30% import quota of refined petroleum products to oil marketer National Oil Corporation of Kenya and 100% import quota of crude oil to Kenya Petroleum Refinery Limited (KPRL) hence giving them volumes needed to hedge in the international market, steps should be taken to widen the scope of players to involve the private sector to participate. Keywords: Relationship, oil price, Exchange rates and maize prices in KenyaPurpose: The purpose of this study was to determine the Relationship between oil prices, Exchange rates and maize prices in KenyaMethodology: The study adopted exploratory and descriptive design. Exploratory research was used to understand the relationships among the variables of this research. Descriptive research was used to understand the current situation. The population used for the 3 variables are; Abu Dhabi National Oil Corporation (ADNOC) crude oil prices for oil prices, Central Bank of Kenya for KES/USD exchange rates and Food Agricultural Organization (FAO) Nairobi (due to missing data for Eldoret) wholesale maize prices per metric ton for maize prices.Results: The study findings revealed that these three markets namely the crude oil market, the foreign exchange market and the commodity market have separate risk management dynamics and should be administered individually. Central Bank of Kenya prudential guidelines (2008) on risk management that came into effect this year, mandate financial institutions to use derivatives to manage risk by using different kinds of instruments like foreign exchange derivatives interest rate derivatives, commodity based derivatives etc. though implementation has not started. However, current risk management strategies in the financial market allow for hedging against adverse movement in foreign exchange market. This would drastically reduce the costs of imports especially petroleum products and its derivatives that go into production.Policy recommendation: The study recommended creation of a commodity exchange that would add value to commercial participants such as farmers and millers with benefits accruing to consumers. This could prove difficult in the beginning especially in policy guidelines and implementation but would prove worthwhile in the end. Some of the steps taken towards a fully-fledged commodity exchange is the introduction of the Warehouse Receipt System (WRS). This allows farmers to concentrate on farming as they store their produce for future selling and also as security for loans in commercial banks.Procurement policies should be reviewed especially in regards to the oil sector. Although the government through the Kenya Gazette, 2012 has granted a 30% import quota of refined petroleum products to oil marketer National Oil Corporation of Kenya and 100% import quota of crude oil to Kenya Petroleum Refinery Limited (KPRL) hence giving them volumes needed to hedge in the international market, steps should be taken to widen the scope of players to involve the private sector to participate.
37
Siami-Namini, Sima. "Volatility Transmission Among Oil Price, Exchange Rate and Agricultural Commodities Prices." Applied Economics and Finance 6, no. 4 (June 10, 2019): 41. http://dx.doi.org/10.11114/aef.v6i4.4322.
Full textAbstract:
The aim of this article is to examine the interdependence relationship among the volatilities of crude oil price, U.S. dollar exchange rate, and a set of agricultural commodities prices. An autoregressive (AR) with an exponential generalized autoregressive conditional heteroscedasticity (EGARCH) model or AR-EGARCH process and vector error correction model (VECM) approach was used on monthly data spanning from Jan 1986 to Dec 2005 as the pre-crisis period and from Jan 2006 to Nov 2015 as the post-crisis period. The results show that volatility in the agricultural commodity returns for most cases are affected by the volatility of the crude oil returns in the post-crisis period. Also, the volatility of the U.S. dollar exchange rate highly affects the agricultural commodities returns in the pre-crisis than the post-crisis periods. Furthermore, crude oil returns volatility does affect the U.S. dollar exchange rate volatility in the post-crisis period, which in turn affects the volatility of the agricultural commodities returns through changes in prices. The results of impulse response function (IRFs) are significant for most agricultural commodities volatility in the post-crisis period than the pre-crisis period.
38
Rejnuš, O. "The significance of commodity exchanges for trade in agricultural products in the Czech Republic, and prospects of their future development." Agricultural Economics (Zemědělská ekonomika) 48, No. 10 (March 1, 2012): 467–72. http://dx.doi.org/10.17221/5354-agricecon.
Full textAbstract:
The paper deals with the functioning of commodity exchanges in the Czech Republic, and is particularly concerned with exchanges trading in agricultural production commodities. The introductory part of the paper is oriented towards the theory and general structure of commodity exchanges; the other parts subsequently deal (in more detail) with the most problematic areas of their operation in the Czech Republic up to the present time. Within this part of the paper, the method of analytical evaluation is used for examining, above all, the existing legal regulation, the structure and function of these exchanges. Subsequently, using the method of comparative analysis, selected key aspects of their operation are compared with the theoretical requirements of their functioning as well as with the everyday functioning of this kind of exchange in economically developed countries. Findings gathered this way are subsequently utilized in the concluding part of the paper, the subject matter of which is a prediction about the possible variants of the future development of Czech agricultural commodity exchanges, with regard to the assumed admission of the Czech Republic to the European Union.
39
Thị Nhung, Nguyễn, Nguyen Nhu Ngan, Tran Thi Hong, and Nguyen Dinh Cuong. "Hedging with commodity futures: evidence from the coffee market in Vietnam." Investment Management and Financial Innovations 17, no. 4 (November 4, 2020): 61–75. http://dx.doi.org/10.21511/imfi.17(4).2020.06.
Full textAbstract:
In July 2018, the Vietnam Commodity Exchange (VNX) was transferred into the Mercantile Exchange of Vietnam (MXV) to hedge price risks through futures on international commodity exchanges. This research aimed to verify the efficiency of futures on ICE EU and ICE US under the perspective of hedging for Vietnamese coffee, determine optimal hedging ratios and the optimal number of each futures contract, and investigate the feasibility of introducing domestic commodity exchanges in Vietnam. Using the Vector Error Correction Model (VECM), the results show that (1) Robusta futures with expiration dates of January, March, May, and July on ICE EU are efficient hedging tools, but the adverse result is justified for Arabica futures on ICE US; (2) Robusta futures with the expiration date of January are the best in terms of risk management for Vietnamese coffee market; (3) optimal hedge ratio of Robusta futures of around 34% is much lower than ratios showed by previous researches; (4) in the short term, introducing coffee futures into the domestic commodity exchanges is still not feasible in the short term, but should be considered in the long term in Vietnam. This is the first study providing empirical evidence about the hedging role of futures contracts on ICE EU and ICE US, contributing to enrich the existing empirical evidence on the hedging role of futures for the agricultural sector.
40
Çalışkan, Koray. "Markets and Fields: An Ethnography of Cotton Production and Exchange in a Turkish Village." New Perspectives on Turkey 37 (2007): 115–45. http://dx.doi.org/10.1017/s0896634600004751.
Full textAbstract:
AbstractHow do farmers explain their engagement with commodity production and the market? This article describes the universe of cotton production and exchange in a Turkish village. Building on the scholarship concerning the anthropology of markets, I offer an account of the power relations concerning exchange in the countryside whereby a cluster of agents interact in multiple ways. Describing the microcosm of cotton production and exchange as it is perceived by farmers in the largest cotton-producing village of the Söke Plain in western Turkey, the essay documents how farmers mobilize resources, interact with agricultural workers, find credit, and finally sell their product. Farmers see the market and their fields as interconnected geographies of struggle between various actors. In contrast to the cotton field where they perceive themselves as active and formative agents in the rural political economic universe, cotton growers understand the market as a location of encounter dominated by traders and controlled by various mercantile tools that weaken their agency. The market is neither only a place where the price is set, nor merely a location of commodity exchange. It is a power field where farmers encounter the “production” of price as relatively passive agents of trade.
41
Hernandez, Manuel A., Shahidur Rashid, Solomon Lemma, and Tadesse Kuma. "Market Institutions and Price Relationships: The Case of Coffee in the Ethiopian Commodity Exchange." American Journal of Agricultural Economics 99, no. 3 (March 24, 2017): 683–704. http://dx.doi.org/10.1093/ajae/aaw101.
Full text
42
Wawire, Amos W., Sabina M. Wangia, and Julius J. Okello. "Determinants of Use of Information and Communication Technologies in Agriculture: The Case of Kenya Agricultural Commodity Exchange in Bungoma County, Kenya." Journal of Agricultural Science 9, no. 3 (February 13, 2017): 128. http://dx.doi.org/10.5539/jas.v9n3p128.
Full textAbstract:
Access to markets by Smallholder farmers has conventionally been constrained by lack of market information. Efforts to strengthen access of farmers to markets has triggered the mushrooming of several projects that embrace ICT tools in promoting access to competitive market information. Nevertheless, most farmers still lack access to accurate market information, such as existing commodity prices. This study examines the determinants of the use of ICT tools among smallholder farmers for agricultural transactions. The study uses Kenya Agricultural Commodity Exchange (KACE), one of the ICT-based marketing platform, as the case study. The objectives of the research are to determine the factors that influence access to agricultural information, and establishing factors that determine the intensity of use of ICT tools in accessing agricultural information. Survey was conducted among 136 smallholder farmers in Bungoma County. Both purposive, and multi-stage sampling were used to obtain the sample for this research. The study finds that several farmer characteristics, farm and capital endowment factors affect the use of ICT tools, particularly mobile phones. Gender, age, literacy level, affordability, perceived importance, mobile ownership and group membership were found to be significant in influencing the decision to use KACE ICT tools and the intensity of use of these tools for agricultural transaction activities. The study further recommends for policies that support the expansion of ICT projects, training on their applications and sensitization on the use of these platforms. The study suggests for policies to address gender disparities on access and use of ICT tools for agricultural transaction.
43
Siddiqui, Saif, and Preeti Roy. "Predicting Volatility and Dynamic Relation Between Stock Market, Exchange Rate and Select Commodities." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 67, no. 6 (2019): 1597–611. http://dx.doi.org/10.11118/actaun201967061597.
Full textAbstract:
Commodities play a vital role in the development of emerging economies, like India. From this perspective, the study presents dynamic correlation in the prices of gold, crude oil, exchange rate and Indian stock market from April 01, 2014 to March 28, 2018. VARMA-BEKK-GARCH model is estimated for return and volatility spillovers across markets. Bidirectional returns spillover was found between Nifty and WTI and WTI and Gold pair. Whereas the bidirectional volatility spillover between Nifty and Gold pair. From the DCC-GARCH correlational analysis, Gold was found to be effective hedging commodity for Indian stock investors than Crude Oil. The asymmetric impact of shocks in covariance is observed between Nifty 50 and all other variables. The study focuses to aid investors and portfolio diversifiers while taking investment decisions.
44
Ocran, Matthew, and Nicholas Biekpe. "Trends and volatility in sub Saharan Africa’s key primary commodity exports." South African Journal of Economic and Management Sciences 10, no. 1 (February 21, 2013): 116–29. http://dx.doi.org/10.4102/sajems.v10i1.541.
Full textAbstract:
Using a GARCH model the paper sought to test the hypothesis that price volatility of key Sub Saharan Africa primary commodity exports, have not changed over the past four decades. Whilst crude oil, aluminium, cocoa and six others have not experienced significant change in price volatility over the period, nine other major commodities recorded changes. Efforts need to be made to extensively diversify the portfolio of agricultural commodity exports by including new products of which price volatilities in the past decades have been reduced. This is crucial for countries that depend on up to three primary commodities for the bulk of their foreign exchange earnings. Other measures such as value addition can also help in reducing impacts of unfavourable price movements.
45
Just, Małgorzata, and Aleksandra Łuczak. "Assessment of Conditional Dependence Structures in Commodity Futures Markets Using Copula-GARCH Models and Fuzzy Clustering Methods." Sustainability 12, no. 6 (March 24, 2020): 2571. http://dx.doi.org/10.3390/su12062571.
Full textAbstract:
The dynamic development of commodity derivatives markets has been observed since the mid-2000s. It is related to the development of e-commerce, the inflow of financial investors’ capital, and the emergence of exchange-traded funds and passively managed index funds focused on commodities. These advances are accompanied by changes in dependence structure in the markets. The main purpose of this study is to assess the conditional dependence structure in various commodity futures markets (energy, metals, grains and oilseeds, soft commodities, agricultural commodities) in the period from the beginning of 2000 to the end of 2018. The specific purpose is to identify the states of the market corresponding to typical patterns of the conditional dependency structure, and to determine the time of transition from one state to another. The copula-based Multivariate Generalized Autoregressive Conditional Heteroskedasticity models were used to describe the dynamics of dependencies between the rates of return on prices of commodity futures, while the dynamic Kendall’s tau correlation coefficients were applied to measure the strength of dependencies. The daily changes in the conditional dependence structure in the markets (changes in states of the markets) were identified with the fuzzy c-means clustering method. In 2000–2018, the conditional dependence structure in commodity futures markets was not stable, as evidenced by the different states of markets identified (two states in the grains and oilseeds market, the agricultural market, the soft commodities market and the metals market, and three states in the energy market).
46
Volkenand, Steffen, Guenther Filler, and Martin Odening. "The impact of order imbalance on returns, liquidity, and volatility in agricultural commodity markets." Agricultural Finance Review 78, no. 5 (October 1, 2018): 571–91. http://dx.doi.org/10.1108/afr-10-2017-0099.
Full textAbstract:
PurposeThe purpose of this paper is to investigate and compare the impact of order imbalance on returns, liquidity and price volatility in agricultural futures markets on an intraday basis. The authors examine whether order imbalance is more powerful to explain variations in asset prices compared to other indicators of trading activity, particularly trading volume.Design/methodology/approachUsing Chicago Mercantile Exchange best bid best offer data, the impact of order imbalance is analyzed via regression analyses. The analyses are carried out for corn, wheat, soy, live cattle and lean hogs in March 2008 and March 2016.FindingsResults confirm the positive relation between order imbalance and returns as well as between order imbalance and price volatility as suggested by market microstructure models. Order imbalance, however, does not generally outperform trading volume as an explanatory variable.Practical implicationsFor some contracts, returns can be predicted using lagged order imbalance. This offers the opportunity to derive profitable trading strategies.Originality/valueThis paper is one of the first attempts to explore the relationship between order imbalance and returns, liquidity and volatility for agricultural commodity futures on an intraday basis, accounting for the increased trading volume and for the high speed at which new information enters the market in an electronic trading environment.
47
Syofya, Heppi, and Silvia Rahayu. "Peran Sektor Pertanian terhadap Perekonomian Indonesia (Analisis Input-Output)." Manajemen dan Kewirausahaan 9, no. 3 (September 28, 2018): 91. http://dx.doi.org/10.31317/jmk.9.3.91-103.2018.
Full textAbstract:
The strategic role of the agricultural sector in the national development includes: providing food for the Indonesian population, foreign exchange earners through exports, supplying industrial raw materials, increasing employment and business opportunities, increasing regional income, alleviating poverty and driving the movement of other economic sectors. In fact, until now the agricultural sector still faces many problems. Government policies that are not in favor of the agricultural sector are obstacles to the development of the agricultural sector. The government is more concerned with the industrial sector because the industry sector has been claimed to provide high income compared to the agricultural sector. Investors are also more interested in investing in the industrial sector than in the agricultural sector. The purpose of this study is to see the magnitude of the relationship between agricultural sub-sectors, both in the future and backward, in the Indonesian economy, seeing the magnitude of the influence of the agricultural sector on the increase in total output, community income, and absorption of Indonesian labor, and see what agricultural sub-sectors can be classified as a leading commodity, potential and lagging commodity in Indonesia based on the ranking of the forward and backward linkages, the agricultural sub-sector that can be classified as a sector that triggers economic growth, the income generating sector and the labor absorption sector based on the number multiplier
48
Karaman, S., and F. Yavuz. "Hedonic price analysis of the quality characteristics of Anatolian hard red wheat." Agricultural Economics (Zemědělská ekonomika) 60, No. 10 (October 21, 2014): 469–78. http://dx.doi.org/10.17221/37/2014-agricecon.
Full textAbstract:
The study analyses the relations between the quality characteristics and price of the Anatolian Hard Red Wheat. It uses a data set consisting of the price and eight quality characteristics of the Anatolian Hard Red Wheat traded in spot transaction in each month of 2011 in the Polatli Commodity Exchange. Marginal implicit values of the quality characteristics of the Anatolian Red Hard Wheat traded in the spot market of the Polatli Commodity Exchange are determined through the hedonic price model. This model is estimated from the linear-log functional form. Results of the hedonic price model demonstrate that the quality characteristics, which are statistically significant in the determination of price, namely, the protein content, the hectolitre weight, and the grain content damaged by pests and wheat bugs, are important factors in the purchasing decisions of flour millers. As the protein content and the hectolitre weight of wheat increase by 1%, the price increases by TL 0.005 and TL 0.006, respectively. As the grain content damaged by pests and wheat bugs increases by 1%, the price of wheat drops by TL 0.0002. These marginal implicit values are expected to encourage wheat producers to produce the higher quality wheat.
49
Balcilar, Mehmet, and Festus Victor Bekun. "Do oil prices and exchange rates account for agricultural commodity market spillovers? Evidence from the Diebold and Yilmaz Index." Agrekon 59, no. 3 (April 24, 2020): 366–85. http://dx.doi.org/10.1080/03031853.2019.1694046.
Full text
50
TIAHNYRIADNO, Oleh. "RISK MANAGEMENT OF DOMESTIC COMMODITY PRODUCERS USING STOCK MARKET INSTRUMENTS." Ukrainian Journal of Applied Economics 4, no. 4 (October 30, 2019): 94–101. http://dx.doi.org/10.36887/2415-8453-2019-4-11.
Full textAbstract:
Introduction. One of the peculiarities of Ukrainian agrarian market functioning is the growth of uncertainties, whose impact has increased significantly as a result of globalization processes. The constant change of external and internal factors causes risks, which become the main problem of management, as they determine the directions and production efficiency and agricultural products sale. Therefore, there is a need to apply progressive risk management methods and tools that are effective and efficient under current conditions. Companies use derivatives (trusted derivatives) to turn their cases around and limit uncertainty about future businesses for revitalization. Therefore, derivatives are actually invested in some economies and make their effectiveness for a higher level of valuable assets in the course of exchange trading. The purpose of the article is to substantiate scientifically theoretical positions and methodological approaches, to develop alternative risk management strategies through stock exchange instruments, namely types of derivatives – options. Results. The importance of theoretical bases formation of the risk essence is substantiated that can be faced by domestic producers. The ways of uncertainties occurrence, stages of their transformation are explained. The theoretical approach to risk management through the use of futures contracts is systematized. The historical stages of using derivatives development have been evaluated. The new approach to risk management is proposed through the use of the optional Collar strategy. Conclusions. Any business activity is unthinkable without risks in developed countries, so any manufacturer seeks to insure its risk, including through a fixed market. The terminal market allows for redistribution of risks among market participants, on which a particular derivative operates. The advantage of derivatives is the leverage that allows participants to operate large amounts of risk management funds, including hedging their own products. Keywords: risk, risk management, risk management, hedges, options, futures, derivatives, derivatives.