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Impacts of Futures Markets Speculation and Rail Transportation Networks on Commodity Basis Behavior

Author

Listed:
  • Woodard, Joshua
  • Dutta, Tridib
  • Xue, Lin

Abstract

Interactions between rail and transportation networks on commodity price behavior and grain flows remains an important issue in the agricultural sector, from both an industry and policy perspective. This study explores the determinants of commodity price basis and basis convergence with a particular focus on the influence of futures market speculation in conjunction with rail rates and transportation networks, and finds that speculative positions have a significant widening impact on the basis. An overview of the data automation and data sourcing routines used in the study, employing the Ag-Analytics.org platform, is also presented.

Suggested Citation

  • Woodard, Joshua & Dutta, Tridib & Xue, Lin, 2016. "Impacts of Futures Markets Speculation and Rail Transportation Networks on Commodity Basis Behavior," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236159, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:236159
    DOI: 10.22004/ag.econ.236159
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    File URL: https://ageconsearch.umn.edu/record/236159/files/Rail_AAEA.pdf
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    References listed on IDEAS

    as
    1. Casavant, Kenneth L., 2015. "Theme Overview: Agricultural Grain Transportation: Are We Underinvesting and Why?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 30(3), pages 1-2, July.
    2. William W. Wilson & Bruce Dahl, 2011. "Grain pricing and transportation: dynamics and changes in markets," Agribusiness, John Wiley & Sons, Ltd., vol. 27(4), pages 420-434, September.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Agribusiness; Agricultural and Food Policy; Financial Economics; Public Economics;
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