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Price Dynamics in the North American Wheat Market

Published online by Cambridge University Press:  15 September 2016

Jungho Baek  and
Won W. Koo
Jungho Baek
Affiliation:
Center for Agricultural Policy and Trade Studies, Department of Agribusiness and Applied Economics, at North Dakota State University in Fargo
Won W. Koo
Affiliation:
Center for Agricultural Policy and Trade Studies, Department of Agribusiness and Applied Economics, at North Dakota State University in Fargo
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Abstract

Perron's test, Johansen cointegration analysis, and a vector error-correction (VEC) model are used to identify structural change, as well as to examine price dynamics in the U. S. and Canadian hard red spring (HRS) and durum wheat markets. It is found that, due to the U. S. Export Enhancement Program (EEP), price instability experienced in June 1986 has resulted in structural changes for Canadian HRS and durum prices. We also find that Canadian prices have significant effects on the determination of the U. S. prices in the North American wheat market.

Keywords

Canadian wheat exportsdurum wheathard red spring wheatJohansen cointegration testunit root test with a structural breakvector error-correction
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 35 , Issue 2 , October 2006 , pp. 265 - 275
Copyright
Copyright © 2006 Northeastern Agricultural and Resource Economics Association 

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