Does Speculation Drive Commodity Prices Evidence From The Market For Corn

Author : Niklas Humann
Publisher : GRIN Verlag
ISBN 13 : 3346496171
Total Pages : 46 pages
Book Rating : 4.71/5 ( download)

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Download or read book Does Speculation Drive Commodity Prices? Evidence from the Market for Corn written by Niklas Humann and published by GRIN Verlag. This book was released on 2021-09-22 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2020 in the subject Economics - Finance, grade: 1,0, University of Münster, language: English, abstract: This seminar paper reviews the literature on futures markets as well as the recent food crisis and presents an empirical investigation of the influence of (index) speculation on the corn price. My findings are in line with most of the other empirical conclusions that, rather than speculation, factors from the real and monetary economy played a role in the spike of commodity prices. For centuries, corn has been one of the most produced crops in the world, used to feed people, livestock and machines. During the last quarter of the twentieth-century, world food prices declined by more than 50 percent, thereby improving the nourishment of people all over the world. However, this extensive decline also raised calls for protectionist policies, aimed at defending the welfare of commodity producers. Starting in the early 2000s, all classes of commodities have experienced hefty price increases. The price for corn increased by more than 250 percent in roughly three years (2005-2008). The resulting food crisis devastated low-income communities around the globe, with the already large part of their income they spent on food becoming even more substantial, causing hunger and malnutrition. While a variety of explanations for this crisis have been offered, some were quick to blame excessive (index) speculation.

Author : Joseph P. Janzen
Publisher :
ISBN 13 : 9781457855009
Total Pages : 51 pages
Book Rating : 4.03/5 ( download)

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Download or read book Deconstructing Wheat Price Spikes written by Joseph P. Janzen and published by . This book was released on 2014-06-07 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2008, wheat futures prices spiked and then crashed along with prices for other agricultural and nonagricultural commodities. Market observers offered several theories to explain this common movement, or comovement, in prices, and have proposed policies to address the perceived problem of excessive price volatility. The design of an appropriate policy response would benefit from a better understanding of the cause of the observed price movements. This study uses an econometric model to decompose observed wheat prices into a set of economic factors and measure the relative contribution of each factor to observed price changes. Findings show that market-specific shocks related to supply and demand for wheat were the dominant cause of price spikes in the three U.S. wheat futures markets. Fluctuations in the global macroeconomy associated with broadbased demand shocks were relatively less significant for wheat than for other commodities like crude oil and corn. Little evidence suggests commodity index trading contributed to recent price spikes. Tables and figures. This is a print on demand report.

Author : Craig Pirrong
Publisher : Cambridge University Press
ISBN 13 : 1139501976
Total Pages : 238 pages
Book Rating : 4.72/5 ( download)

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Download or read book Commodity Price Dynamics written by Craig Pirrong and published by Cambridge University Press. This book was released on 2011-10-31 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: Commodities have become an important component of many investors' portfolios and the focus of much political controversy over the past decade. This book utilizes structural models to provide a better understanding of how commodities' prices behave and what drives them. It exploits differences across commodities and examines a variety of predictions of the models to identify where they work and where they fail. The findings of the analysis are useful to scholars, traders and policy makers who want to better understand often puzzling - and extreme - movements in the prices of commodities from aluminium to oil to soybeans to zinc.

Author : Scott H. Irwin
Publisher : CABI
ISBN 13 : 1800622082
Total Pages : 279 pages
Book Rating : 4.81/5 ( download)

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Download or read book Speculation by Commodity Index Funds written by Scott H. Irwin and published by CABI. This book was released on 2023-04-25 with total page 279 pages. Available in PDF, EPUB and Kindle. Book excerpt: Commodity futures prices exploded in 2007-2008 and concerns about a new type of speculative participant in commodity futures markets began to emerge. The main argument was that unprecedented buying pressure from new "commodity index" investors created massive bubbles that resulted in prices substantially exceeding fundamental value. At the time, it was not uncommon to link concerns about speculation and high prices to world hunger, food crises, and civil unrest. Naturally, this outcry resulted in numerous regulatory proposals to restrict speculation in commodity futures markets. This book presents important research on the impact of index investment on commodity futures prices that the authors conducted over the last fifteen years. The eleven articles presented in the book follow the timeline of our involvement in the world-wide debate about index funds as it evolved after 2007. We also include an introductory chapter, new author forewords for each article chapter, and a lessons learned chapter to round out the book. Policy-makers, researchers, and market participants will find the book not only functions as useful documentation of the debate; but, also as a natural starting point when high commodity prices inevitably create the next speculation backlash.

Author : United States Department of Agriculture
Publisher : CreateSpace
ISBN 13 : 9781505433609
Total Pages : 48 pages
Book Rating : 4.06/5 ( download)

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Download or read book Deconstructing Wheat Price Spikes written by United States Department of Agriculture and published by CreateSpace. This book was released on 2014-12-09 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2008, wheat futures prices spiked and then crashed along with prices for other agri-cultural and nonagricultural commodities. Market observers offered several theories to explain this common movement, or comovement, in prices, and have proposed policies to address the perceived problem of excessive price volatility. The design of an appropriate policy response would benefit from a better understanding of the cause of the observed price movements. This study uses an econometric model to decompose observed wheat prices into a set of economic factors and measure the relative contribution of each factor to observed price changes. Findings show that market-specific shocks related to supply and demand for wheat were the dominant cause of price spikes in the three U.S. wheat futures markets. Fluctuations in the global macroeconomy associated with broadbased demand shocks were relatively less significant for wheat than for other commodities like crude oil and corn. Finally, little evidence suggests commodity index trading contributed to recent price spikes.

Author : Walter C. Labys
Publisher :
ISBN 13 :
Total Pages : 360 pages
Book Rating : 4.70/5 ( download)

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Download or read book Speculation, Hedging, and Commodity Price Forecasts written by Walter C. Labys and published by . This book was released on 1970 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : United States. Congress. Senate. Committee on Appropriations
Publisher :
ISBN 13 :
Total Pages : 388 pages
Book Rating : 4.79/5 ( download)

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Download or read book Speculation in Commodity Markets written by United States. Congress. Senate. Committee on Appropriations and published by . This book was released on 1948 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Takatoshi Ito
Publisher : University of Chicago Press
ISBN 13 : 0226386899
Total Pages : 346 pages
Book Rating : 4.98/5 ( download)

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Download or read book Commodity Prices and Markets written by Takatoshi Ito and published by University of Chicago Press. This book was released on 2011-03 with total page 346 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fluctuations of commodity prices, most notably of oil, capture considerable attention and have been tied to important economic effects. This book advances our understanding of the consequences of these fluctuations, providing both general analysis and a particular focus on the countries of the Pacific Rim.

Author : Jean-Paul Chavas
Publisher : University of Chicago Press
ISBN 13 : 022612892X
Total Pages : 394 pages
Book Rating : 4.24/5 ( download)

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Download or read book The Economics of Food Price Volatility written by Jean-Paul Chavas and published by University of Chicago Press. This book was released on 2014-10-14 with total page 394 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The conference was organized by the three editors of this book and took place on August 15-16, 2012 in Seattle."--Preface.

Author : L. Dee Belveal
Publisher :
ISBN 13 :
Total Pages : 374 pages
Book Rating : 4.23/5 ( download)

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Download or read book Commodity Speculation written by L. Dee Belveal and published by . This book was released on 1967 with total page 374 pages. Available in PDF, EPUB and Kindle. Book excerpt: