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Price relationships in the Queensland barley market
Author(s) -
Gali V. Jyothi,
Brown C.G.
Publication year - 2002
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.10010
Subject(s) - cointegration , economics , market price , supply and demand , error correction model , agricultural economics , monetary economics , econometrics , microeconomics
Barley can be differentiated into feed and malting barley based on its end‐use markets. Substitutability both in supply and in demand complicates analysis of price information in the barley market. This article examines the price linkages between feed and malting barley in the Queensland barley market using cointegration and error correction models. Malting barley prices respond to restore equilibrium relationships with corresponding feed barley prices in the long run, but not vice versa. Thus feed barley prices appear to be a leading indicator of malting barley prices. [JEL codes: L100, C22, N57.] © 2002 Wiley Periodicals, Inc.