Lead-lag relationships of soybean complex cash prices
Martin Beutler, B. Wade Brorsen
Abstract
Martin Beutler, B. Wade Brorsen
Abstract
This article explores lead-lag relationships among daily cash prices of soybeans, soybean oil, and soybean meal. The article seeks to determine the impact of a change in one of these prices on the others. Results show changes in the cash price of soybeans have a greater effect on product prices than changes in product prices have on soybeans. Consequently, changes in soybean supply are the major cause of price fluctuations within the soybean complex.
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This article explores lead-lag relationships among daily cash prices of soybeans, soybean oil, and soybean meal. The article seeks to determine the impact of a change in one of these prices on the others. Results show changes in the cash price of soybeans have a greater effect on product prices than changes in product prices have on soybeans. Consequently, changes in soybean supply are the major cause of price fluctuations within the soybean complex.
Key concepts: Cash, Economics, Soybean oil, Lag, Soybean meal, Monetary economics, Lead (geology), Product (mathematics)