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The impact of multiple volatilities on import demand for U.S. commodities: the case of soybeans
Author(s) -
Zhang Qiang,
Reed Michael R.,
Saghaian Sayed H.
Publication year - 2010
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.20214
Subject(s) - futures contract , economics , commodity , exchange rate , econometrics , financial economics , agricultural economics , monetary economics , finance
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.