An empirical study on the relationship between corn futures prices of China and the United States

The futures prices of Chinese agricultural products are generally followed by the Chicago commodity exchange futures prices. The main reason for this study is to test the relationship between corn futures prices in China and the United States. The Johansen Co-integration test and VECM are employed i...

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Bibliographic Details
Published inJournal of international studies (Kyiv) Vol. 8; no. 3
Main Author Qiu Mengyuan
Format Journal Article
LanguageEnglish
Published Szczein Centre of Sociological Research/Tsentr Sotsiolohichnykh Doslidzhen 01.01.2015
Subjects
Agricultural products
Cointegration analysis
Corn
Futures market
Prices
United States > US
China
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Summary:The futures prices of Chinese agricultural products are generally followed by the Chicago commodity exchange futures prices. The main reason for this study is to test the relationship between corn futures prices in China and the United States. The Johansen Co-integration test and VECM are employed in this paper. The results indicated that corn futures prices in America had a significant effect on prices of China. There is a long-term relationship of association between the two variables. By comparison, the information in the corn market of America transfers faster and the U.S. corn futures market plays a leading role. This research also put forward some suggestions about how to promote the development of China’s corn futures market.
ISSN:2071-8330
2306-3483
DOI:10.14254/2071-8330.2015/8-3/15