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The impact of multiple volatilities on import demand for U.S. commodities: the case of soybeans

Author

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  • Qiang Zhang

    (Department of Agricultural Economics, University of Kentucky, Lexington, KY 40546-0276)

  • Michael R. Reed

    (Department of Agricultural Economics, University of Kentucky, Lexington, KY 40546-0276)

  • Sayed H. Saghaian

    (Department of Agricultural Economics, University of Kentucky, Lexington, KY 40546-0276)

Abstract

The focus of this study is the effects of exchange rate, commodity price, and ocean freight cost risks on import demand with forward-futures markets. The case of U.S. and Brazilian soybeans is analyzed empirically using monthly data. A two-way error component two-stage least squares procedure for panel data is used for the analysis. Risk for these three effects is measured by the moving average of the standard deviation. Major soybean importers are sensitive to exchange rate risk. Importing countries in general are not sensitive to soybean price and ocean shipping cost risks for Brazilian or U.S. soybeans. © 2010 Wiley Periodicals, Inc.

Suggested Citation

  • Qiang Zhang & Michael R. Reed & Sayed H. Saghaian, 2010. "The impact of multiple volatilities on import demand for U.S. commodities: the case of soybeans," Agribusiness, John Wiley & Sons, Ltd., vol. 26(2), pages 202-219.
    • Handle: RePEc:wly:agribz:v:26:y:2010:i:2:p:202-219
    DOI: 10.1002/agr.20214
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    References listed on IDEAS

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    Cited by:

    1. Zhu, Manhong & Seale, James L. Jr & VanSickle, John, 2015. "China’s soybean import allocation analysis by country-of-origin," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196797, Southern Agricultural Economics Association.
    2. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "On the drivers of global grain price volatility: an empirical investigation," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(1), pages 31-42.
    3. Hong, Chang & Liefert, William M. & Wang, Sun Ling, 2017. "Exchange Rates, Income Growth, and Chinese Agricultural Imports," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258447, Agricultural and Applied Economics Association.
    4. Stephen, James D. & Mabee, Warren E. & Saddler, Jack N., 2013. "Lignocellulosic ethanol production from woody biomass: The impact of facility siting on competitiveness," Energy Policy, Elsevier, vol. 59(C), pages 329-340.
    5. Raphaël Chiappini & Yves Jégourel, 2014. "Futures Market Volatility, Exchange Rate Uncertainty and Cereals Exports: Empirical Evidence from France," GREDEG Working Papers 2014-34, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

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