Oil Price Pass Through to Agricultural Commodities
AAEA members release new research in AJAE
There is evidence that recent increases in oil supply have been reflected in corn prices. While likely confounded by market disruptions caused by COVID-19, our work suggests that the current developments in oil markets will have important ramifications for horizon-based behavior in corn markets in the months and years to come.
In the new article "Oil Price Pass Through to Agricultural Commodities" published in the American Journal of Agricultural Economics, co authors Clark Lundberg, from San Diego State University, Tristan Skolrud from the University of Saskatchewan, Bahram Adrangi from the University of Portland, and Arjun Chatrath from the University of Portland look into whether the relationships between oil prices and agricultural commodity prices vary over different time horizons.
Lundberg says, "Previous scholarship has disagreed over the nature of the relationship between oil and agricultural commodity prices. We develop a new econometric approach that provides insight into the horizon-based nature of the relationship. This approach allows us to identify a much more complex relationship than previous research was able to describe and helps to reconcile the lack of consensus in the literature."
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ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes two journals, the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices and the online open access publication series Applied Economics Teaching Resources. To learn more, visit www.aaea.org.
Contact: Allison Ware
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