Price Volatility Spillover in Agricultural Markets: An Examination of U.S. Catfish Markets

Price volatility spillovers in the U.S. catfish supply chain are analyzed based on monthly price data from 1980 through 2000 for catfish feed, its ingredients, and farm- and wholesale-level catfish. The exponential generalized autoregressive conditional heteroskedasticity (EGARCH) model was used to test univariate volatility spillovers for prices in the supply chain. Strong price volatility spillover from feeding material (corn, soybeans, menhaden) to catfish feed and farm- and wholesale-level catfish prices was detected.catfish, EGARCH, vertical market chains, volatility spillover, Demand and Price Analysis,

Radiofrequency applications in grapevine: From vineyard to web

SUMMARY An experimental trial was commenced in January 2007 of a traceability system for grapevine plants produced in a nursery and for electronic management of vineyards. The main objective was producing grafted cuttings using common nursery procedures, but in which were internally installed Radio Frequency Identification chips. The trial used five common Tuscan grapevine clones. The modified plants were indistinguishable from unmarked plants, and will maintain this electronic feature throughout their life. The marked plants can be easily monitored, and will be able to supply various information, including identity, growth parameters, susceptibility to biotic stress factors, and productivity. All information is available by a website accessing a database, guaranteeing that users (e.g. nursery workers, grapevine growers, and plant pathologists) can use online access to retrieve information on every marked plant

SELLER AND BUYER SATISFACTION AND PARTICIPATION IN TURKEY'S WHEAT EXCHANGES

This study uses data from a survey of wheat sellers and buyers in five different exchanges in Turkey to gain a better understanding of seller and buyer satisfaction with the current exchange system and factors that influence exchange participants' decisions to choose exchanges over other ways of selling wheat. The descriptive and econometric results indicate that most sellers and buyers have a few problems with the current system. The major dissatisfaction with exchanges are prices and fees. The Tobit model results suggest that there is a great potential for accepting a new grading system and accepting legally enforceable warehouse receipts because sellers and buyers most concerned about warehouse receipts use the exchanges the least

SELLER AND BUYER SATISFACTION AND PARTICIPATION IN TURKEY'S WHEAT EXCHANGES

This study uses data from a survey of wheat sellers and buyers in five different exchanges in Turkey to gain a better understanding of seller and buyer satisfaction with the current exchange system and factors that influence exchange participants' decisions to choose exchanges over other ways of selling wheat. The descriptive and econometric results indicate that most sellers and buyers have a few problems with the current system. The major dissatisfaction with exchanges are prices and fees. The Tobit model results suggest that there is a great potential for accepting a new grading system and accepting legally enforceable warehouse receipts because sellers and buyers most concerned about warehouse receipts use the exchanges the least.Crop Production/Industries, Marketing,

Price Volatility Spillover in Agricultural Markets: An Examination of U.S. Catfish Markets

Price volatility spillovers in the U.S. catfish supply chain are analyzed based on monthly price data from 1980 through 2000 for catfish feed, its ingredients, and farm- and wholesale-level catfish. The exponential generalized autoregressive conditional heteroskedasticity (EGARCH) model was used to test univariate volatility spillovers for prices in the supply chain. Strong price volatility spillover from feeding material (corn, soybeans, menhaden) to catfish feed and farm- and wholesale-level catfish prices was detected

Price Index Insurances in the Agriculture Markets

In this article, we introduce price index insurances on agricultural goods. Although these seem similar to derivatives, there are significant differences between price index insurances and derivatives. First, unlike derivatives, there are no entrance barriers for purchasing insurances, making them the risk management tools that are accessible to almost all farmers. Second, since insurances are issued in a certain number for any individual farm, unlike futures, for example, they cannot be used for speculation and are used solely for hedging price risk. Third, unlike forwards, they are heavily regulated and do not default and cause counterparty risk. In addition to all differences (or benefits), such products have just recently been introduced in the agricultural insurance market. In this article, we investigate if there could have been a financially viable market where these products are traded. More precisely, we investigate whether an insurance company can design a portfolio of optimal contracts that gives a higher Sharpe ratio than the financial market index prices (here, FTSE 100 and other three major indexes). To reach the article’s objective, we take three steps, in considering theoretical, practical, and corporation standpoints. In the first step, we show what an optimal contract would look like from the demand side in a theoretical setup and we obtain the optimal contract from the farmers' standpoint. In the second step, by adopting a more practical approach in meeting the Key Performance Indicators requirements set by the market participants (both demand and supply side), we find the optimal policies specifications from the first step, in the market equilibrium. This step also helps to determine some unobservable market parameters like volatility. Finally, by adopting a corporation standpoint we bring our model to the U.K. farm index prices and find an optimal portfolio of the products on products from 10 commodities. We demonstrate that investing in such a business is financially viable, as the optimal insurance portfolio produces a Sharpe ratio that outperforms the FTSE 100 and other major market indexes

Transfer of Financial Risk in Emerging Eastern European Stock Markets: A Sectoral Perspective

With the rise of interconnected global financial systems, there is an increased risk that a financial crisis in one country may spread to others. The contagion effects of the 2008 global financial crisis hit advanced economies fast and hard while sparing less developed and less integrated financial systems. The present study focuses on the contagion effects at Eastern European stock markets and changes in their interconnections after EU accession in 2004. Specifically, we investigate the relationship among the stock market sectors of Poland, Hungary and the Czech Republic during 1998-2009 and their exposure to on-shored financial risk. The evidence suggests direct linkages between different stock market sectors with respect to returns and volatilities with increased equity-shock transmission between markets after EU accession in 2004. Of particular note is the intra-industry contagion in emerging Europe. Our findings have implications for asset pricing and portfolio selection for international financial institutions and financial managers