Agricultural Commodities and Crude Oil Prices: An Empirical Investigation of Their Relationship

Zafeiriou, Eleni; Arabatzis, Garyfallos; Karanikola, Paraskevi; Tampakis, Stilianos; Tsiantikoudis, Stavros

doi:10.3390/su10041199

Cited by 56 publications

(38 citation statements)

References 24 publications

(37 reference statements)

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“…Using a VECM model, Chen and Saghaian (2015) showed that the relationship between oil, ethanol, and sugar has become stronger after 2008 in Brazil, where oil price tends to impact the other two variables, while sugar price tends to impact ethanol price. Most of the studies capturing the correlation between oil and agricultural markets interpret such correlations as the transmissions and spillovers from the former to the latter (Koirala et al 2015;Zafeiriou et al 2018;Allen et al 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Modeling the Impact of Agricultural Shocks on Oil Price in the US: A New Approach

Hồ

et al. 2019

JRFM

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The current literature has generally considered prices of the agricultural commodity as an endogenous factor to crude oil price. As such, the role of the agricultural market in the energy sector has been largely ignored. We argue that the expansion of agricultural production may trigger a significant increase in oil price. In addition, the world has recently witnessed a growth in biofuel production, leading to an increase in the size of the agricultural sector. This study is conducted to examine the impact of different agricultural shocks on the oil and agricultural markets in the US for the period from 1986 to 2018. The study utilizes the Structural Vector Autoregressive (SVAR) model to estimate the relationship between the agricultural market and the crude oil market. Moreover, the variance decomposition is also used to quantify the contribution of agricultural demand shocks on oil price variations. Findings from this paper indicate that different agricultural shocks can have different effects on oil price and that corn use in ethanol plays an important role in the impact of corn demand shocks on oil price. We find evidence that the agricultural market can have an impact on oil prices through two main channels: indirect cost push effect and direct biofuel effect. Of these, the biofuel channel unexpectedly suggests that the expansion of bioethanol may in fact foster the dependency of the economy on fossil fuel use and prices.

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Section: Literature Reviewmentioning

confidence: 99%

Modeling the Impact of Agricultural Shocks on Oil Price in the US: A New Approach

Hồ

et al. 2019

JRFM

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“…In addition, they examine volatility transmission by using the Dynamic Conditional Covariance (DCC)-Generalized Autoregressive Conditional Heteroscedasticity (GARCH) approach and find that both commodities volatility affects each other which is important for diversified portfolio allocation. Zafeiriou et al (2018) examine the relationship between crude oil, corn and soybean futures monthly data over the period of 1987 to 2015 by using autoregressive distributed lag (ARDL) approach. They find that crude oil price affects the prices of ethanol and agricultural products.…”

Section: Vecmmentioning

confidence: 99%

Volatility Transmission Among Oil Price, Exchange Rate and Agricultural Commodities Prices

Siami‐Namini¹

2019

AEF

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The aim of this article is to examine the interdependence relationship among the volatilities of crude oil price, U.S. dollar exchange rate, and a set of agricultural commodities prices. An autoregressive (AR) with an exponential generalized autoregressive conditional heteroscedasticity (EGARCH) model or AR-EGARCH process and vector error correction model (VECM) approach was used on monthly data spanning from Jan 1986 to Dec 2005 as the pre-crisis period and from Jan 2006 to Nov 2015 as the post-crisis period. The results show that volatility in the agricultural commodity returns for most cases are affected by the volatility of the crude oil returns in the post-crisis period. Also, the volatility of the U.S. dollar exchange rate highly affects the agricultural commodities returns in the pre-crisis than the post-crisis periods. Furthermore, crude oil returns volatility does affect the U.S. dollar exchange rate volatility in the post-crisis period, which in turn affects the volatility of the agricultural commodities returns through changes in prices. The results of impulse response function (IRFs) are significant for most agricultural commodities volatility in the post-crisis period than the pre-crisis period.

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“…Individual types of waste are increasingly used in various industries [27,28]. In the scientific literature, however, there are no reports on their comprehensive use to obtain a valuable products intended for human consumption.…”

Section: Introductionmentioning

confidence: 99%

Compaction Process as a Concept of Press-Cake Production from Organic Waste

et al. 2020

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As a result of agri-food production large amounts of organic waste are created in the form of press cakes. Until now, they were mainly used as animal fodder and also utilized for biofuels production. No other way usage has been found yet. A large quantity of these by-products is usually discarded in open areas, which leads to potentially serious environmental problems. The rich chemical composition of these waste products makes it possible to use them for producing other food products valuable for consumers. Based on the test results obtained, it can be stated that moisture content of press cakes is varied and depends on the input material. However, appropriately composed mixtures of various waste products and a properly conducted compaction process allows for obtaining a new product with functional properties. In addition, application of honey powder and starch tablet coating creates a product of resistant to compression and cutting. Results seem to have commercial importance, as they demonstrate that properly processed by-products can be used in food preparations as dietary supplements.

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Agricultural Commodities and Crude Oil Prices: An Empirical Investigation of Their Relationship

Cited by 56 publications

References 24 publications

Modeling the Impact of Agricultural Shocks on Oil Price in the US: A New Approach

Modeling the Impact of Agricultural Shocks on Oil Price in the US: A New Approach

Volatility Transmission Among Oil Price, Exchange Rate and Agricultural Commodities Prices

Compaction Process as a Concept of Press-Cake Production from Organic Waste

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