Publication:
What Explains Agricultural Price Movements?

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dc.contributor.authorHaniotis, Tassos
dc.contributor.authorBaffes, John
dc.date.accessioned2016-03-10T16:30:33Z
dc.date.available2016-03-10T16:30:33Z
dc.date.issued2016-03
dc.description.abstractAfter 2005, commodity prices experienced their longest and broadest boom since World War II. Agricultural prices have now come down considerably since their 2011 peak, but are still 40 percent higher in real terms than their 2000 lows. This paper briefly addresses the main arguments on the causes of the agricultural price cycle. It broadens the scope of analysis by focusing on six agricultural commodities, and identifies the relative weights of key quantifiable drivers of their prices. It concludes that increases in real income negatively affect real agricultural prices, as predicted by Engel's Law. Energy prices matter most (not surprisingly, given the energy-intensive nature of agriculture), followed by stock-to-use ratios and, to a lesser extent, exchange rate movements. The cost of capital affects prices only marginally, probably because it not only influences demand, but also evokes a supply response.en
dc.identifierhttp://documents.worldbank.org/curated/en/2016/03/26002712/explains-agricultural-price-movements
dc.identifier.doi10.1596/1813-9450-7589
dc.identifier.urihttps://hdl.handle.net/10986/23927
dc.languageEnglish
dc.language.isoen_US
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7589
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectFOOD PRICE
dc.subjectMARKET DEVELOPMENTS
dc.subjectMONETARY POLICY
dc.subjectUNCERTAINTIES
dc.subjectPRICE LEVELS
dc.subjectFOREIGN INVESTMENT
dc.subjectPRICE INCREASES
dc.subjectDEVELOPING COUNTRIES
dc.subjectCOST OF CAPITAL
dc.subjectSTOCK
dc.subjectENERGY PRICES
dc.subjectMARKET DEVELOPMENTS
dc.subjectINFORMATION SYSTEM
dc.subjectSECURITY CONCERNS
dc.subjectPRICE UNCERTAINTIES
dc.subjectINCOME
dc.subjectINTEREST
dc.subjectPURCHASING‐POWER
dc.subjectCOMMODITY PRICE
dc.subjectEMERGING ECONOMIES
dc.subjectINTEREST RATE
dc.subjectEXCHANGE
dc.subjectTREASURIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectPRODUCER PRICES
dc.subjectFOOD PRICES
dc.subjectPRICE INDICES
dc.subjectFISCAL POLICY
dc.subjectEXCHANGE RATE
dc.subjectPRICE
dc.subjectMARKET FAILURE
dc.subjectSUPPLY SCHEDULE
dc.subjectPRICE TREND
dc.subjectASSET VALUES
dc.subjectINTEREST RATE
dc.subjectTREASURY BILL
dc.subjectSUPPLY SCHEDULES
dc.subjectPRICE VOLATILITY
dc.subjectINFLATION
dc.subjectPRICE INCREASES
dc.subjectDEVELOPING COUNTRY
dc.subjectPRICE VARIATION
dc.subjectCENTRAL BANK
dc.subjectMARKET PARTICIPANTS
dc.subjectASSET VALUES
dc.subjectPUBLIC POLICY
dc.subjectNATURAL GAS PRICES
dc.subjectPRICE INDICES
dc.subjectGLOBAL ECONOMY
dc.subjectINFORMATION SYSTEM
dc.subjectAGRICULTURAL COMMODITIES
dc.subjectCURRENCY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectEXCHANGE RATE MOVEMENTS
dc.subjectRESERVE BANK
dc.subjectEMERGING ECONOMIES
dc.subjectPRICE VOLATILITY
dc.subjectFOOD PRICE
dc.subjectINFLATIONARY PRESSURES
dc.subjectPRODUCTS
dc.subjectEXCHANGE RATES
dc.subjectINTEREST RATES
dc.subjectMARKET FAILURES
dc.subjectPUBLIC POLICY
dc.subjectNATURAL DISASTERS
dc.subjectDEBT
dc.subjectMARKETING
dc.subjectMARKETS
dc.subjectINTEREST RATES
dc.subjectBORROWING COUNTRIES
dc.subjectAGRICULTURAL PRICES
dc.subjectEXCHANGE RATE MOVEMENTS
dc.subjectSUPPLY SCHEDULES
dc.subjectPRODUCT
dc.subjectAGRICULTURAL PRICE
dc.subjectNATURAL RESOURCES
dc.subjectINVENTORY
dc.subjectAGRICULTURAL PRICES
dc.subjectCOMMODITY PRICE
dc.subjectMARKET PRICE
dc.subjectPRICE INFLATION
dc.subjectEXPENDITURE
dc.subjectCOMMODITY‐PRICE
dc.subjectCONSUMPTION
dc.subjectFEDERAL RESERVE
dc.subjectPRICE TRENDS
dc.subjectFEDERAL RESERVE BANK
dc.subjectPOLICIES
dc.subjectVOLATILITY
dc.subjectMARKET FAILURES
dc.subjectFINANCIAL CRISIS
dc.subjectSTANDARD OF LIVING
dc.subjectAGRICULTURAL PRICE
dc.subjectFUTURE
dc.subjectGLOBAL ECONOMY
dc.subjectVALUE
dc.subjectPOLICY MAKERS
dc.subjectFOREIGN INVESTMENT
dc.subjectDEMAND
dc.subjectAGGREGATE DEMAND
dc.subjectNOMINAL INTEREST RATES
dc.subjectPRICE LEVEL
dc.subjectCONSUMER PRICE
dc.subjectPRICE CHANGES
dc.subjectINCOMES
dc.subjectPRICES INDEX
dc.subjectPRICE FLUCTUATIONS
dc.subjectEXCHANGE RATES
dc.subjectBORROWING COUNTRIES
dc.subjectFEDERAL RESERVE
dc.subjectDEMAND GROWTH
dc.subjectCEREAL PRICES
dc.subjectMARKET
dc.subjectENERGY PRICES
dc.subjectPOLICY
dc.subjectTREASURY
dc.subjectPRICE MOVEMENTS
dc.subjectINSURANCE
dc.subjectCURRENCIES
dc.subjectCOMMODITY PRICES
dc.subjectECONOMIC DEVELOPMENT
dc.subjectTRADE
dc.subjectMARKET FAILURE
dc.subjectNATURAL GAS
dc.subjectCOST OF CAPITAL
dc.subjectSECURITY
dc.subjectSTOCKS
dc.subjectINVESTMENT
dc.subjectCOAL
dc.subjectSUPPLY
dc.subjectPURCHASING
dc.subjectINSURANCE MECHANISMS
dc.subjectCOMMODITY MARKETS
dc.subjectPOWER‐PARITY
dc.subjectFEDERAL RESERVE BANK
dc.subjectINVESTMENTS
dc.subjectCONSUMER PRICE INDEX
dc.subjectPRICE INDEX
dc.subjectPRICE OF COAL
dc.subjectNOMINAL INTEREST RATES
dc.subjectTOTAL DEMAND
dc.subjectCOMMODITIES
dc.subjectEXCHANGE RATE
dc.subjectPRICE LEVELS
dc.subjectFOOD PRICES
dc.subjectPRICE MOVEMENTS
dc.subjectPRICE INDEX
dc.subjectFEDERAL RESERVE BANK
dc.subjectCOMMODITY PRICES
dc.subjectCOMMODITY
dc.subjectPRICES
dc.subjectENERGY PRICE
dc.subjectCOST OF CAPITAL
dc.subjectSUPPLY SCHEDULE
dc.subjectSTORAGE
dc.titleWhat Explains Agricultural Price Movements?en
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleWhat Explains Agricultural Price Movements?
okr.date.disclosure2016-03-01
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2016/03/26002712/explains-agricultural-price-movements
okr.guid896671468000259659
okr.identifier.doi10.1596/1813-9450-7589
okr.identifier.externaldocumentum090224b0841c685e_1_0
okr.identifier.internaldocumentum26002712
okr.identifier.reportWPS7589
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/03/01/090224b0841c685e/1_0/Rendered/PDF/What0explains00al0price0movements00.pdfen
okr.topicAgriculture::Commodity Risk Management
okr.topicEnergy::Energy Policies & Economics
okr.topicIndustry::Food & Beverage Industry
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
relation.isAuthorOfPublication18b25906-9cb0-519d-95a9-8bfd4c5a3666
relation.isAuthorOfPublication.latestForDiscovery18b25906-9cb0-519d-95a9-8bfd4c5a3666
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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