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Price Dynamics in U.S. Grain and Freight Markets


  • Tun-Hsiang (Edward) Yu
  • David A. Bessler
  • Stephen W. Fuller


"This paper studies the spatial price linkages in U.S. grain and transportation markets using cointegration analysis and algorithms of inductive causation on directed acyclic graphs. Transport costs and prices from alternative transportation modes are considered to provide a relatively comprehensive view of the interaction between grain and freight markets over time. Dynamic relationship among corn prices in selected U.S. markets and freight rates, extending from January 1990 to December 2002, are explored. Results suggest the Mississippi Gulf (lower Mississippi River port area) is the most dominant corn market among evaluated export and domestic markets. Also, grain barge rates on the upper Mississippi/Illinois Rivers influence domestic corn markets in contemporaneous time. In the longer-run, significant dynamic relationships among prices in domestic and export corn markets and freight rates are observed; perturbations in transportation rates affect the variation in corn prices considerably." Copyright 2007 Canadian Agricultural Economics Society.

Suggested Citation

  • Tun-Hsiang (Edward) Yu & David A. Bessler & Stephen W. Fuller, 2007. "Price Dynamics in U.S. Grain and Freight Markets," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(3), pages 381-397, September.
  • Handle: RePEc:bla:canjag:v:55:y:2007:i:3:p:381-397

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    References listed on IDEAS

    1. David R. Bell & Jeongwen Chiang & V. Padmanabhan, 1999. "The Decomposition of Promotional Response: An Empirical Generalization," Marketing Science, INFORMS, vol. 18(4), pages 504-526.
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    6. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, vol. 33(3), pages 497-511, March.
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    Cited by:

    1. Axarloglou, Kostas & Visvikis, Ilias & Zarkos, Stefanos, 2013. "The time dimension and value of flexibility in resource allocation: The case of the maritime industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 52(C), pages 35-48.
    2. Axarloglou, Kostas & Visvikis, Ilias & Zarkos, Stefanos, 2012. "The Time Dimension And Value Of Flexibility In Resource Allocation: The Case Of The Maritime Industry," DUTH Research Papers in Economics 2-2012, Democritus University of Thrace, Department of Economics.
    3. Kim, Man-Keun & Tejeda, Hernan & Yu, T. Edward, 2016. "Dynamic and Spatial Relationships in US Rice Markets," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229784, Southern Agricultural Economics Association.
    4. Peri, Massimo & Baldi, Lucia, 2010. "Vegetable oil market and biofuel policy: An asymmetric cointegration approach," Energy Economics, Elsevier, vol. 32(3), pages 687-693, May.
    5. Lemus, David MagaƱa & Bessler, David A., 2014. "Price Dynamics in Agricultural Markets: Relationships between the U.S. and Mexico," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169736, Agricultural Economics Society.

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