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The impact of multiple volatilities on import demand for U.S. commodities: the case of soybeans

Author Info

  • Qiang Zhang

    (Department of Agricultural Economics, University of Kentucky, Lexington, KY 40546-0276)

  • Michael R. Reed

    (Department of Agricultural Economics, University of Kentucky, Lexington, KY 40546-0276)

  • Sayed H. Saghaian

    (Department of Agricultural Economics, University of Kentucky, Lexington, KY 40546-0276)

Registered author(s):

    Abstract

    The focus of this study is the effects of exchange rate, commodity price, and ocean freight cost risks on import demand with forward-futures markets. The case of U.S. and Brazilian soybeans is analyzed empirically using monthly data. A two-way error component two-stage least squares procedure for panel data is used for the analysis. Risk for these three effects is measured by the moving average of the standard deviation. Major soybean importers are sensitive to exchange rate risk. Importing countries in general are not sensitive to soybean price and ocean shipping cost risks for Brazilian or U.S. soybeans. © 2010 Wiley Periodicals, Inc.

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    File URL: http://hdl.handle.net/10.1002/agr.20214
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    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 26 (2010)
    Issue (Month): 2 ()
    Pages: 202-219

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    Handle: RePEc:wly:agribz:v:26:y:2010:i:2:p:202-219
    Contact details of provider: Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    Cited by:

    1. Raphaël Chiappini & Yves Jégourel, 2014. "Futures Market Volatility, Exchange Rate Uncertainty and Cereals Exports: Empirical Evidence from France," GREDEG Working Papers 2014-34, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.

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