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Agricultural Futures Prices And New Information

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  • Kitchen, John

Abstract

Agricultural futures prices react quickly to new information. Results from agricultural futures price regressions suggest that nominal interest rate variation was dominated by variation in real interest rates during the October 1979 to October 1982 period when the Federal Reserve targeted Ml. During the rest of the 1970s and 1980s, nominal interest rate variation appeared to be more related to variation in inflation expectations. Also, corn and Wheat prices reacted to unexpected rain shocks, while soybean prices were more sensitive to temperature shocks. Export, stocks, and loan rate shocks were not as important in the evolution of spot prices.

Suggested Citation

  • Kitchen, John, 1988. "Agricultural Futures Prices And New Information," Staff Reports 278066, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278066
    DOI: 10.22004/ag.econ.278066
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    References listed on IDEAS

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    Cited by:

    1. Kitchen, John & LeBlanc, Michael & Conway, Roger, 1989. "Commodity Prices in Monetary Policy: The Potential Role of Agricultural Commodity Prices," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270491, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Hamrick, Karen S., 1991. "Macroeconomic Impacts on Nonmetro Unemployment: Preliminary Research," Staff Reports 278579, United States Department of Agriculture, Economic Research Service.

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