CAUSAL RELATIONSHIPS BETWEEN GRAIN, MEAT PRICES AND EXCHANGE RATES
Understanding agricultural commodity price relationships are important as they help producers improve their awareness regarding production costs and ultimately aid in income determination. The present paper empirically examines the dynamic interrelationships among grain, meat prices and the U.S....
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| Format: | Article |
| Language: | English |
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International Journal of Food and Agricultural Economics
2017-10-01
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| Series: | International Journal of Food and Agricultural Economics |
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| Online Access: | http://www.foodandagriculturejournal.com/Vol5.No4.pp1.pdf |
| Summary: | Understanding agricultural commodity price relationships are important as they help
producers improve their awareness regarding production costs and ultimately aid in income
determination. The present paper empirically examines the dynamic interrelationships among
grain, meat prices and the U.S. dollar exchange rate. Johansen cointegration tests reveal no
cointegrating relationships among the study variables. Majority of the commodities studied
in the paper exhibited unidirectional causality except for corn and lean hogs. The vector
autoregression (VAR) model results indicate that the grain and meat prices are influenced by
their own past prices. The role of exchange rates is found to be limited in linking the
agricultural commodities. |
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| ISSN: | 2147-8988 |