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Futures–spot price transmission in EU corn markets

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  • Carlotta Penone
  • Elisa Giampietri
  • Samuele Trestini

Abstract

Price transmission between futures and spot prices is a relevant issue, dealing with derivatives exchange for price management practices and efficient price discovery. Indeed, due to the increased market orientation of the Common Agricultural Policy, the development of new market strategies is of utmost importance for European farmers. In this context, this study examines the degree of transmission for the corn commodity between global futures price in either the Chicago Board of Trade or Euronext and the spot prices for a selection of Member States of the European Union. This study provides critical insights into the shape of the futures–spot price transmission, confirming a long‐run relationship and a cointegrating behaviour of price sets. [EconLit Citations: Q02, Q14, E3].

Suggested Citation

  • Carlotta Penone & Elisa Giampietri & Samuele Trestini, 2022. "Futures–spot price transmission in EU corn markets," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 679-709, July.
    • Handle: RePEc:wly:agribz:v:38:y:2022:i:3:p:679-709
    DOI: 10.1002/agr.21735
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    1. Luca Cattivelli & Federico Antonioli, 2023. "When cointegration is interrupted: Price transmission analysis in the Italian dairy‐feed industry," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 744-761, July.

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