Search Result

Srl

Item

ID: 126528

Crude oil–corn–ethanol – nexus: a contextual approach / Natanelov, Valeri; McKenzie, Andrew M; Huylenbroeck, Guido Van

Huylenbroeck, Guido Van	Journal Article
	0 Rating(s) & 0 Review(s)

Publication

2013.

Summary/Abstract

This paper offers a holistic study on the complex relationships between crude oil, corn and ethanol during a turbulent period between 2006 and end of 2011. Through a holistic mapping of the current market situation and a contextual analytical design we show that there exists a strong relationship between crude oil and corn markets on one side, and crude oil and ethanol on the other. However, the price relationship between corn and ethanol was revealed to be less straightforward, and is driven by the US government fuel policy. Furthermore the study indicates that corn markets have became more prone to volatility due to ethanol production, especially when the demand for corn is high and/or the crude oil prices are high enough to create a competitive market for ethanol.

Key Words

Context ; Biofuel Policy ; Commodity Futures Prices

In Basket

Export

ID: 109350

Is there co-movement of agricultural commodities futures prices / Natanelov, Valeri; Alam, Mohammad J; McKenzie, Andrew M; Huylenbroeck, Guido Van

Huylenbroeck, Guido Van	Journal Article
	0 Rating(s) & 0 Review(s)

Publication

2011.

Summary/Abstract

Even though significant attempts have appeared in literature, the current perception of co-movement of commodity prices appear inadequate and static. In particular we focus on price movements between crude oil futures and a series of agricultural commodities and gold futures. A comparative framework is applied to identify changes in relationships through time and various cointegration methodologies and causality tests are employed. Our results indicate that co-movement is a dynamic concept and that some economic and policy development may change the relationship between commodities. Furthermore we show that biofuel policy buffers the co-movement of crude oil and corn futures until the crude oil prices surpass a certain threshold.

Key Words

Threshold Cointegration ; Commodities Futures ; Co - Movement

In Basket

Export