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Inventory shocks and the oil–ethanol–grain price nexus

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  • Plante, Michael
  • Dhaliwal, Navi

Abstract

We analyze the effects of oil and grain inventory data releases on oil, ethanol, corn and soy futures prices. Oil and grain inventory shocks are identified as the percent difference between actual inventory levels and median predictions from a survey of forecasters. Ethanol futures prices alone are found to respond to both oil and grain inventory shocks. Other energy futures prices respond only to oil inventory shocks, while agricultural commodity futures prices respond only to grain inventory shocks.

Suggested Citation

  • Plante, Michael & Dhaliwal, Navi, 2017. "Inventory shocks and the oil–ethanol–grain price nexus," Economics Letters, Elsevier, vol. 156(C), pages 58-60.
    • Handle: RePEc:eee:ecolet:v:156:y:2017:i:c:p:58-60
    DOI: 10.1016/j.econlet.2017.03.036
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    References listed on IDEAS

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    More about this item

    Keywords

    Oil price; Grain price; Ethanol; Inventory shock; EIA; USDA;
    All these keywords.

    JEL classification:

    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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