The Value of USDA Crop Progress and Condition Information: Reactions of Corn and Soybean Futures Markets
This paper investigates the informational value of USDA crop progress and condition information by analyzing reactions of corn and soybean futures markets from 1986 to 2012. Results show significant differences between close-to-open return variabilities on report-release trading days and pre- and po...
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| Format: | Article |
| Language: | English |
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Western Agricultural Economics Association
2014-04-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/168261 |
| _version_ | 1818984252589473792 |
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| author | Georg V. Lehecka |
| author_facet | Georg V. Lehecka |
| author_sort | Georg V. Lehecka |
| collection | DOAJ |
| description | This paper investigates the informational value of USDA crop progress and condition information by analyzing reactions of corn and soybean futures markets from 1986 to 2012. Results show significant differences between close-to-open return variabilities on report-release trading days and pre- and postreport days. Additionally, market prices tend to react rapidly and rationally to new crop-condition information. Strongest reactions are found for July and August, when weather conditions are most critical for the crop, and reactions have increased over time. Overall, these results suggest that reports have substantial informational value. |
| first_indexed | 2024-12-20T18:16:03Z |
| format | Article |
| id | doaj.art-f9c9e7fb66c249d1b3c02c108d6b0de8 |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-12-20T18:16:03Z |
| publishDate | 2014-04-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-f9c9e7fb66c249d1b3c02c108d6b0de82022-12-21T19:30:22ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852014-04-013918810510.22004/ag.econ.168261168261The Value of USDA Crop Progress and Condition Information: Reactions of Corn and Soybean Futures MarketsGeorg V. LeheckaThis paper investigates the informational value of USDA crop progress and condition information by analyzing reactions of corn and soybean futures markets from 1986 to 2012. Results show significant differences between close-to-open return variabilities on report-release trading days and pre- and postreport days. Additionally, market prices tend to react rapidly and rationally to new crop-condition information. Strongest reactions are found for July and August, when weather conditions are most critical for the crop, and reactions have increased over time. Overall, these results suggest that reports have substantial informational value.https://ageconsearch.umn.edu/record/168261conditioncornfutures marketsmarket efficiencymarket reactionsprogresspublic informationsoybeans |
| spellingShingle | Georg V. Lehecka The Value of USDA Crop Progress and Condition Information: Reactions of Corn and Soybean Futures Markets Journal of Agricultural and Resource Economics condition corn futures markets market efficiency market reactions progress public information soybeans |
| title | The Value of USDA Crop Progress and Condition Information: Reactions of Corn and Soybean Futures Markets |
| title_full | The Value of USDA Crop Progress and Condition Information: Reactions of Corn and Soybean Futures Markets |
| title_fullStr | The Value of USDA Crop Progress and Condition Information: Reactions of Corn and Soybean Futures Markets |
| title_full_unstemmed | The Value of USDA Crop Progress and Condition Information: Reactions of Corn and Soybean Futures Markets |
| title_short | The Value of USDA Crop Progress and Condition Information: Reactions of Corn and Soybean Futures Markets |
| title_sort | value of usda crop progress and condition information reactions of corn and soybean futures markets |
| topic | condition corn futures markets market efficiency market reactions progress public information soybeans |
| url | https://ageconsearch.umn.edu/record/168261 |
| work_keys_str_mv | AT georgvlehecka thevalueofusdacropprogressandconditioninformationreactionsofcornandsoybeanfuturesmarkets AT georgvlehecka valueofusdacropprogressandconditioninformationreactionsofcornandsoybeanfuturesmarkets |