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Price formation within Egypt's wheat tender market: Implications for Black Sea exporters

Author

Listed:
  • Heigermoser, Maximilian
  • Götz, Linde
  • Svanidze, Miranda

Abstract

Black Sea wheat exporters, led by Russia, dominate Egypt's wheat imports via a tender system. The tenders are managed by the GASC and their outcomes are communicated worldwide by financial news agencies. Building on a transaction-specific dataset on GASC tenders (2011 - 2019), results of our cointegration analysis find wheat export markets of Russia, France and the USA highly integrated with the GASC tender price. Estimates from the multivariate VECM indicate strong price interdependencies between the GASC tender price and Russian and French export prices, indicating fierce competition in the GASC tender market. Despite the high market share of wheat exporters in the Black Sea region and Russia in particular, tests on weak exogeneity suggest a leading role of the French wheat export price. We further find that leadership of US wheat prices is weak in the GASC tender market.

Suggested Citation

  • Heigermoser, Maximilian & Götz, Linde & Svanidze, Miranda, 2021. "Price formation within Egypt's wheat tender market: Implications for Black Sea exporters," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 52(5), pages 819-831.
    • Handle: RePEc:zbw:espost:242478
    DOI: 10.1111/agec.12656
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    Citations

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    Cited by:

    1. Thomas Glauben & Miranda Svanidze & Linde Götz & Sören Prehn & Tinoush Jamali Jaghdani & Ivan Đurić & Lena Kuhn, 2022. "The War in Ukraine, Agricultural Trade and Risks to Global Food Security," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 57(3), pages 157-163, May.
    2. Götz, Linde Johanna & Svanidze, Miranda, 2023. "Getreidehandel und Exportbeschränkungen während des Ukrainekrieges," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 103(13 (Konfe), pages 37-41.
    3. Abay, Kibrom A. & Abdelfattah, Lina & Breisinger, Clemens & Siddig, Khalid, 2023. "Evaluating cereal market (dis)integration in less developed and fragile markets: The case of Sudan," Food Policy, Elsevier, vol. 114(C).

    More about this item

    Keywords

    Black Sea region; multivariate cointegration; spatial market integration; wheat;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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