Seasonal Quality Premiums for Wheat

Jens-Peter Loy, Thore Holm, Carsten Steinhagen and Thomas Glauben

No 149744, 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. from Agricultural and Applied Economics Association

Abstract: Seasonal variations of the price premium between bread and feed wheat indicate opportunities to profitably adjusting the grain marketing strategy of farmers that harvest (and store) both qualities. In this paper, we estimate the seasonal pattern of wheat price premiums on the German market by a vector error correction (VECM) approach, which accounts for multivariate autoregressive conditional heteroscedasticity of the error terms. Results indicate a significant downward trend for the premium during the marketing season. The trend’s magnitude depends on the average quality of harvested wheat. If farmers have facilities so separately store bread and feed wheat, they should tend to postpone (move forward) their sales of feed (bread) wheat towards the end (beginning) of the season, particularly in years of low average wheat qualities. The volatility of the price premium significantly decreases over the season indicating higher risks at the beginning.

Keywords: Agribusiness; Farm Management; Marketing; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 2
Date: 2013
New Economics Papers: this item is included in nep-agr
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/149744/files/AAEA%20Poster%202013%20Loy.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea13:149744

DOI: 10.22004/ag.econ.149744

Access Statistics for this paper

More papers in 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().