Are Russian Wheat Exporters Able to Price Discriminate? Empirical Evidence from the Last Decade

Significant changes have taken place in the world wheat market in the last decade. Russia, a former net wheat importer, has become a leading exporter with a world market share of 11.2% in 2009. This increasing importance and the discussion about the establishment of a grain‐OPEC consisting of Ukraine, Kazakhstan and Russia has raised the issue of pricing behaviour of Russian wheat exporters. Although there are several studies on the pricing behaviour of Canadian and US wheat exporters, there is none so far for Russian wheat exporters. This study provides a quantitative analysis of the pricing behaviour of Russian wheat exporters, explicitly taking account of the export tax imposed between 2007 and 2008. We employ a pricing‐to‐market (PTM) model on quarterly Russian wheat‐export data, covering the period from 2002 to 2010 and 25 export destinations. Our findings indicate that (i) Russian wheat exporters exercised PTM in only a few importing countries over the whole time period, and (ii) PTM behaviour was more pronounced in the aftermath of the export tax period (i.e. 2008–2010) than before.     

Market interdependence and volatility transmission among major crops

This article provides a comprehensive analysis of the dynamics of volatility across major agricultural commodities in the United States. Volatility interactions across markets may lower the effectiveness of diversification strategies to mitigate price risks and should be taken into account when analyzing the pricing behavior of different agricultural commodities. We follow a multivariate GARCH approach to evaluate the time evolution of conditional correlations and volatility transmission across corn, wheat, and soybeans price returns on a daily, weekly, and monthly basis. The period of analysis is from 1998 to 2012. The estimation results indicate a lack of lead‐lag relationships between corn, wheat, and soybeans price returns at the mean level. We find, however, important volatility spillovers across commodities, particularly at the weekly and monthly level. Wheat and corn seem to play a major role in terms of volatility transmission. Despite the supposed higher financial market integration of agricultural commodities, we do not observe that agricultural markets have become more interdependent in recent years.     

Pricing‐To‐Market Analysis: The Case of EU Wheat Exports

The EU is a major player in the global wheat market. This paper examines the pricing behaviour of EU wheat exporters using a pricing‐to‐market (PTM) analysis. Wheat is an exemplary product for testing PTM theories as it is widely and frequently traded, and largely unbranded. We estimate the relationship between export unit values and exchange rates using quarterly panel data for 11 EU export destinations for 2000–2013. Results show that there is a meaningful long‐run relationship between export unit values and exchange rates, but there is little evidence of differential mark‐ups between EU export markets. Belarus and Iceland are exceptions where exporters from the EU appear to exercise local currency price stabilisation.     

Price Discrimination in Russian Wheat Exports: Evidence from Firm‐level Data

Russia emerged as an important wheat exporter in recent years raising the question of how this will affect international wheat markets. In particular developing countries – the main destination of Russian wheat exports – could be harmed by aggressive pricing behaviour. This article analyses the exertion of price discrimination by Russian wheat exporting firms based on Krugman's pricing‐to‐market hypothesis. We apply Knetter's panel model to a firm‐level dataset and find evidence for price‐discriminating behaviour by Russian firms in 25 out of 61 destination countries over the period 2002–2011.     

A DYNAMIC ANALYSIS OF US EXPORT WHEAT PRICING AND MARKET SHARES

The economics of a higher loan rate to support US wheat prices is analysed. Utilising optimal control theory, a dynamic wheat trade model is developed. The basic premise underlying the model is that the United States finds itself having transient monopoly power in the wheat market. An expression for the optimal pricing policy which maximises the present value of expected profits over the indefinite future is derived. Results from both the theoretical and empirical models demonstrate that the US wheat pricing strategy depends on its costs relative to competitors' costs, the discount rate and the competitors' response function. The main policy implication of the analysis is for the dominant wheat exporting country constantly to seek to lower costs relative to competitors and to maintain a price exceeding unit cost without encouraging competitors' expansion.     

基于光能利用率模型的河南省冬小麦单产估算研究

[目的]快速、准确估算空间尺度上作物产量,对于评价农田生态系统对气候变化的响应、制定科学合理的粮食政策、对外粮食贸易等具有重要意义。河南省冬小麦产量占全国1/4,准确估算河南省冬小麦产量对维护国家粮食安全具有重要作用。单产估算作为农作物估产中的关键技术,也是作物估产的难点之一。[方法]文章首先利用VPM(Vegetation Photosynthesis Model)估算冬小麦NPP(Net Primary Product),结合收获指数、冬小麦收获部分的含水量、含碳量、NPP分配到地上或地下部分比例等一系列符合该研究区的经验指数,进行河南省冬小麦单产估算研究,并分析了引起模拟误差的原因。[结果]模拟单产较实测单产低估4.4%(实测单产为6 810kg/hm~2,模拟单产为6 519kg/hm~2),但两者之间存在显著相关关系,两者相关系数的平方R2=0.70(n=50,p0.01)。通过与MODIS-GPP产品获得的冬小麦单产数据比较,基于VPM模型的模拟结果优于MODIS-GPP产品。[结论]基于VPM可快速、准确估算河南省空间尺度冬小麦单产,该方法具有较好的适用性。     

Price Discrimination in the Context of Vertical Differentiation: An Application to Canadian Wheat Exports

The ability of the Canadian Wheat Board (CWB) to price discriminate in wheat exports is examined. The conceptual model shows that the CWB's ability to exploit cost differences in pricing depends on the extent of differentiation between Canadian and U.S. wheat. This model is implemented using monthly confidential price data for exports to four markets from 1982 to 1994. The empirical results support the conclusions that (1) the CWB has market power emerging from product differentiation, (2) the CWB price discriminates across export markets, and (3) Alchian–Allen effects are important in pricing in markets valuing quality such as Japan and the United Kingdom.     

Style and Performance of Agricultural Market Advisory Services

This article develops measures of marketing style for advisory programs in corn and soybeans and estimates the relationship between style characteristics and pricing performance. Style is measured by the intensity of futures and options use, degree of activeness in marketing, and seasonality of sales. The data set consists of advisory programs tracked by the AgMAS project at the University of Illinois between 1995 and 2004. Results indicate that active programs making large bets on price movements obtain a higher average price than more conservative programs. This is consistent with active advisors possessing superior information and/or analytical skills rather than being overconfident. However, estimates of the relationship between pricing performance and activeness are sensitive to the inclusion of a single high-performing program.     

DISTRIBUTIONS OF INDEMNITIES FOR CROP-INSURANCE PLANS: WITH APPLICATION TO GRAIN CROPS IN NEW SOUTH WALES

A review of crop-insurance schemes is followed by a discussion of a guaranteed-yield, crop-insurance plan. General formulae for the distribution function and mathematical expectation of indemnities for the insurance plan are presented in terms of the distribution of crop yields. Three special cases are considered in which the original yields, the square root of yields, and the logarithm of yields are normally distributed. The insurance plan is applied on a regional basis for wheat and sorghum production in N.S.W. Given distributional information on the crops obtained from a simulation model, expected indemnities are calculated for four different insurance plans.     

我国农产品优质优价研究热点及发展趋势——基于CiteSpace的可视化分析

[目的]优质优价对我国农业转型升级和深化供给侧改革具有重要意义,有较多文献对其进行研究但是对这一概念的起源发展与热点演进不甚明晰,运用文献计量法对其研究进展和态势进行分析,有利于推动优质优价研究进程,进而推进我国农业高质量发展。[方法]文章以中国知网收录文献为数据来源,对其发文量时间分布、被引频次和主要发文作者进行了统计,选用CiteSpace图谱工具对其进行共被引分析、聚类分析和突现词探测分析并进行可视化,运用文献计量法梳理优质优价相关研究脉络和研究热点,并展望其未来发展趋势。[结果]优质优价相关研究的演进历程受政策影响较大,呈波动中上升的趋势,以粮食生产和养蜂业等为研究对象的文章较多;优质优价研究中的主要核心议题为按质论价、优质小麦、优质农产品、专业合作社和养蜂业等,这些研究热点受较多人关注,研究体系较为完善;根据现有趋势可推断专业合作社有望延续热点态势继续发展成为该领域未来的核心议题。[结论]结合优质优价研究所呈现的特征,未来研究应继续关注新型农业经营主体作用,并紧跟政策导向推动“三品一标”行动的实施落地,促进优质优价市场机制焕发活力。     

GOVERNMENT POLICIES AND AGRICULTURAL SUPPLY RESPONSE: PADDY IN SRI LANKA

An aggregate analysis of supply response in the paddy (rice) sector of Sri Lanka during 1952-87 is conducted to identify the impact of pricing policy, irrigation programmes, institutional credit and concessional sales on area, yield and overall supply. The focus of the estimation procedure is the selection of an appropriate functional form for regressions and on the price variable that best represents the price to which producers respond in making area and yield decisions. In the case of both area and yield, the econometric criteria favour the acceptance of log-linear equations with the ratio of the guaranteed price of paddy to fertiliser price. On the basis of overall supply elasticity estimates, it is concluded that while pricing policy, irrigation programmes and institutional credit provide incentives to the expansion of paddy production, concessional sales of rice act as a disincentive.     

Coping with drought with innovative pricing systems: the case of two irrigation water management companies in France

In recent years, France has been facing particularly severe drought periods especially in summer. In a country where agriculture is the largest water user, some irrigation management companies have implemented innovative pricing systems to handle this situation. The objective of this article is to analyze the impact of these new management systems on farmers’ incomes, the revenue of the management companies, and the amount of water used. To do that, we develop a methodology using a stochastic model that simulates the representative farmer's optimal behavior in a context of climatic variability. An empirical application is made with a crop growth model and data collected from the Midi‐Pyrenees region. The results show that using these specific nonlinear pricing systems allow irrigation water managers to reduce the impact of drought on production. Moreover, the type of pricing implemented depends on the characteristics and capabilities of the water company. More particularly, these pricing systems can be used to anticipate agricultural water demand in order to avoid imbalance with water availability.     

Seasonal variability,land values and willingness–to–pay for a forward wheat contract with protein premiums and discounts

This article investigates the impact of a protein premiums and discounts system on the income stream from growing wheat. Based on a biological relationship between protein and yield in uncertain seasonal conditions, it shows that such a system reduces the expected level and variability of wheat income. It is subsequently argued, using a numerical analysis, that protein payments affect both the attraction to wheat growers of forward contracts and the value of land used for wheat. The nature of both of these impacts is related to the level of seasonal variability affecting the land. Consequently, wheat growers in the more unreliable regions of the wheatbelt may have been particularly disadvantaged by the system.     

Do wheat futures returns exhibit long‐range dependence?

The efficient market hypothesis, where asset prices follow a random walk and incorporate all relevant information, is often invoked in financial economics. There is some evidence however to suggest that some asset prices do not follow random walks but display long‐range dependence. Such systematic behavior of past returns is of interest to traders. This article examines long‐range dependence in wheat futures prices using rescaled range analysis and the Hurst exponent. Since this estimate is biased when long‐range dependence is absent and its distribution is unknown, a Monte Carlo simulation approach is proposed. Results show that wheat futures prices show no evidence of long‐range dependence and there are no profitable trading rules.     

FARMERS' ATTITUDES TO RURAL ADJUSTMENT ASSISTANCE: RESULTS OF A SURVEY IN JEMALONG SHIRE,N.S.W.*

The Australian Government has provided adjustment assistance to the rural sector since 1970 under several schemes. The demand for assistance has been lower than expected, given the alleged size of the problem, particularly for the 'welfare' oriented provisions. The results of a survey of farmers' attitudes to the current Rural Adjustment Scheme are examined in an attempt to explain this phenomenon. Measures designed to ease financial difficulties or to facilitate on-farm adjustment were much preferred to those designed to assist farmers to leave agriculture. Considerable confusion about the scheme was evident and many farmers thought that information about the scheme was inadequate. Better extension and counselling is suggested to improve information flows to farmers. The formulation of a more structured set of eligibility criteria is also suggested to reduce the complexity and uncertainty which farmers face when they are considering lodging an application for assistance.     

TWO-TIER PRICING FOR MILK: A RE-EXAMINATION

Principal objections to two-tier pricing have centred on administrative complexities and the ‘transparent’ nature of its cost. However, the credibility of two-tier pricing for milk within the European Community is now enhanced by the existence of a quota scheme and by recent levels of budgetary expenditure. Potential features of two-tier pricing are that farm support can be more readily directed at selected recipients and that lowering of market prices for milk relieves consumers from some of the burden of this support. A major attraction is that the existing quota system allows for an immediate ready-made transition. In this paper, two applications are developed. Both allow varying combinations of quota level and support price, but differ in their impact on producers' incomes. Some degree of national flexibility within the Community is also explored.     

Information,Access and Targeting: The National Rural Employment Guarantee Scheme in India

In this paper, the relationship is assessed between possessing information on, gaining access to and the efficacy of delivery of India's national rural employment guarantee scheme (NREGA) in three states. The results suggest that the link between information, access and the delivery of the scheme is not straightforward. Information can increase the propensity for the programme to be accessed by those who are not its primary target population, and can enhance efficacy of delivery to such beneficiaries. Lack of information, on the other hand, decreases the ability of citizens, particularly the acutely poor, to benefit from the scheme.     

Volatility and Price Jumps in Agricultural Futures Prices—Evidence from Wheat Options

Evidence suggests that agricultural futures price movements have fat-tailed distributions and exhibit sudden and unexpected price jumps. There is also evidence that the volatility of futures prices is time-dependent both as a function of calendar-time (seasonal effect) and time to maturity (maturity effect). This article extends Bates' (1991) jump-diffusion option pricing model by including both seasonal and maturity effects in the volatility specification. Both in-sample and out-of-sample procedures to fit market option prices on wheat futures show that the suggested model outperforms previous published models. A numerical example shows the magnitude of pricing errors for option valuation.     

氮肥减量及秸秆替代过量氮肥下冬小麦/夏玉米轮作体系氮素淋失风险研究

针对过量施用氮肥和地下水硝酸盐超标的现状,探索减量施氮、秸秆替代过量氮肥下土壤氮素的淋失风险,以期为降低氮素淋失风险提供科学依据。通过在河北省徐水县进行连续4年的冬小麦—夏玉米轮作体系田间定位试验,分析耕作(少耕和常规耕作)、施氮量(无机氮0、200和300 kg/hm~2)和秸秆(还田、不还田)等措施对作物收获后土壤无机氮累积、土壤—作物体系氮平衡状况以及冬小麦和夏玉米产量的影响。结果表明,小麦收获后,过量施氮处理0~100 cm土壤硝态氮累积量显著高于其它处理,高达221 kg/hm~2,过高的土壤残留硝态氮增加玉米高温多雨季氮素淋洗风险。3年氮平衡累积量比较显示,过量施氮、少耕/常规耕作减量施氮秸秆还田3处理的氮平衡值无显著性差异,以少耕减量施氮秸秆还田最低,为236 kg/hm~2,过量施氮处理最高,为281 kg/hm~2,三者均显著高于少耕/常规耕作减量施氮秸秆不还田处理。冬小麦—夏玉米轮作体系氮平衡值与0~100 cm土层的土壤无机氮、土壤硝态氮累积量呈显著正相关,说明氮素大量盈余会导致0~100 cm土壤剖面无机氮大量累积,尤其是硝态氮大量累积。少耕和常规耕作减量施氮秸秆还田处理的冬小麦、夏玉米产量与过量施氮无显著差异。综合考虑土壤无机氮累积量、氮平衡值和作物产量,少耕或者常规耕作下,可以利用秸秆氮替代过量无机氮,降低氮素淋洗风险。     

尼日利亚不同地区反刍动物市场定价行为研究

本文对尼日利亚牛羊市场的空间价格一体化程度进行了检验，试图运用双变量自回归时间序列模型验证寡头垄断市场上牛羊价格的非竞争性定价行为。论文分别对牛羊市场的合谋、歧视性、价格领袖和竞争性定价行为进行了经验性检验。结论表明，在牛羊价格形成中，博尔诺（Borno）和索科托（Sokoto）州的牛羊价格领先于克里斯河（CrossRiver）、依莫（Imo）、卡诺（Kano）、拉各斯（Lagos）、尼日尔（Niger）和奥约（Oyo）州这些地方市场的价格。有关证据也支持共谋定价一般与市场的集中有关的判断。