Recent food prices movements: A time series analysis

From 2006 to mid-2008 the international prices of agricultural commodities increased considerably, by a factor larger than two. This upward trend in agricultural prices captured the world’s attention as a new food crisis was emerging. Several explanations for these movements in prices, ranging from...

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Detalles Bibliográficos
Autores principales: Cooke, Bryce, Robles, Miguel
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2009
Materias:
Acceso en línea:https://hdl.handle.net/10568/161965
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author Cooke, Bryce
Robles, Miguel
author_browse Cooke, Bryce
Robles, Miguel
author_facet Cooke, Bryce
Robles, Miguel
author_sort Cooke, Bryce
collection Repository of Agricultural Research Outputs (CGSpace)
description From 2006 to mid-2008 the international prices of agricultural commodities increased considerably, by a factor larger than two. This upward trend in agricultural prices captured the world’s attention as a new food crisis was emerging. Several explanations for these movements in prices, ranging from demand-driven forces to supply shocks, have been provided by analysts, researchers, and development institutions. This paper is an attempt to empirically validate these explanations using time series econometrics and data at monthly frequency. We focus on the international price of corn, wheat, rice, and soybeans. First, we identify variables associated with the factors mentioned as causing the increase in these agricultural commodities prices. Second, we use time series analysis to try to quantitatively validate those explanations. The empirical work presented here includes first difference models and rolling Granger causality tests. Overall, our empirical analysis mainly provides evidence that financial activity in futures markets and proxies for speculation can help explain the observed change in food prices; any other explanation is not well supported by our time series analysis.
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spelling CGSpace1619652025-11-06T05:58:15Z Recent food prices movements: A time series analysis Cooke, Bryce Robles, Miguel shock time use patterns commodity markets From 2006 to mid-2008 the international prices of agricultural commodities increased considerably, by a factor larger than two. This upward trend in agricultural prices captured the world’s attention as a new food crisis was emerging. Several explanations for these movements in prices, ranging from demand-driven forces to supply shocks, have been provided by analysts, researchers, and development institutions. This paper is an attempt to empirically validate these explanations using time series econometrics and data at monthly frequency. We focus on the international price of corn, wheat, rice, and soybeans. First, we identify variables associated with the factors mentioned as causing the increase in these agricultural commodities prices. Second, we use time series analysis to try to quantitatively validate those explanations. The empirical work presented here includes first difference models and rolling Granger causality tests. Overall, our empirical analysis mainly provides evidence that financial activity in futures markets and proxies for speculation can help explain the observed change in food prices; any other explanation is not well supported by our time series analysis. 2009 2024-11-21T09:59:56Z 2024-11-21T09:59:56Z Working Paper https://hdl.handle.net/10568/161965 en Open Access application/pdf International Food Policy Research Institute Cooke, Bryce; Robles, Miguel. 2009. Recent food prices movements: A time series analysis. IFPRI Discussion Paper 942. https://hdl.handle.net/10568/161965
spellingShingle shock
time use patterns
commodity markets
Cooke, Bryce
Robles, Miguel
Recent food prices movements: A time series analysis
title Recent food prices movements: A time series analysis
title_full Recent food prices movements: A time series analysis
title_fullStr Recent food prices movements: A time series analysis
title_full_unstemmed Recent food prices movements: A time series analysis
title_short Recent food prices movements: A time series analysis
title_sort recent food prices movements a time series analysis
topic shock
time use patterns
commodity markets
url https://hdl.handle.net/10568/161965
work_keys_str_mv AT cookebryce recentfoodpricesmovementsatimeseriesanalysis
AT roblesmiguel recentfoodpricesmovementsatimeseriesanalysis