IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The role of local production and the world price in setting local wheat, wool, and beef prices

  • Frost, Mark
  • Parton, Kevin A.
Registered author(s):

    The Australian dollar is considered primarily a commodity-based currency. The high level of commodity-based exports in Australia’s trade balance is given as an explanation. Accordingly changes in world commodity prices should bring commensurate changes in the value of the Australian dollar, such that changes in world commodity prices are only partially transmitted to the Australian economy and local farm-gate prices. If this relationship holds, then local farm-gate prices should be significantly less volatile than their respective world price. Variances in local prices would be due to local factors (e.g. variances in local production) rather than variances in the world price and international factors. This paper examines the farm-gate prices of Australia’s three largest agricultural commodities, wheat, beef, and wool; seeks to establish if the variances in these prices are more closely related to movements in their respective world price or local production factors and, if movements in the Australian dollar decrease local farm-gate variance as expected.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://purl.umn.edu/123139
    Download Restriction: no

    Article provided by Australasian Farm Business Management Network in its journal AFBM Journal.

    Volume (Year): 02 (2005)
    Issue (Month): 1 ()
    Pages:

    as
    in new window

    Handle: RePEc:ags:afbmau:123139
    Contact details of provider: Web page: http://www.csu.edu.au/faculty/science/saws/afbm

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ags:afbmau:123139. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.