Is Wheat a Homogeneous Product?

Larue, Bruno

doi:10.1111/j.1744-7976.1991.tb03560.x

Cited by 53 publications

(46 citation statements)

References 9 publications

(15 reference statements)

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“…Finally, the finding of no cointegration between the three representative wheats belonging to each sub-market indicates that the wheats from each sub-market form no long-run relationship given their distinct end uses. This finding supports the contention that wheat should be differentiated according to end use in econometric modeling (Veeman 1987, Wilson 1989, Larue 1991.…”

Section: Resultssupporting

confidence: 79%

“…Different classes of wheat have different end uses and are not always considered as close substitutes (Antle and Smith 1999). For instance, the Canadian Western Red Spring wheat is considered to be a high quality wheat and generally commands a premium on the world market (Larue 1991). For any other class of wheat to be substitutable, the two classes of wheat would need to be perceived by the consumer as being of similar end use and closely priced.…”

mentioning

confidence: 99%

“…It has been suggested by Veeman (1987), Wilson (1989), and Larue (1991) that wheat should be differentiated according to end use when estimating econometric models. A major implication of these studies is that econometric models of wheat prices that assume product homogeneity generate estimates with no clear interpretation of market integration.…”

mentioning

confidence: 99%

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Market Delineation and Price Leadership in the World Wheat Market: A Cointegration Analysis

Ghoshray

2006

Agric. resour. econ. rev.

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Wheat types may be classified according to strength, a baking characteristic. Since the demand for wheat is derived demand, the baking characteristic is directly related to end use. Accordingly, the wheat classes that are used in this study are divided into sub-groups according to strength, that is, strong, medium, and weak wheats. Time-series methods are employed to determine how the different classes of wheats are related within each sub-group. The different wheats under the different sub-groups are found to be substitutes to various degrees, but form a robust cointegrating relationship, implying that the wheat prices in these markets are bound together by a long-term equilibrium relationship. Within each of the sub-groups, the U.S. wheats were found to act as a price leader, driving the prices of other wheats belonging in the same sub-group. These U.S. wheats were found to form no long-run relationship between each other given their distinct end uses. The study highlights the importance of differentiating wheat by end use to specify price linkages more accurately.

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Section: Resultssupporting

confidence: 79%

mentioning

confidence: 99%

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Market Delineation and Price Leadership in the World Wheat Market: A Cointegration Analysis

Ghoshray

2006

Agric. resour. econ. rev.

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“…They found both quality differentials and prices were competitive factors in international markets. Larue (1991) investigated several issues related to wheat quality for Australia, Canada and the USA. Estimating a hedonic price model, he suggested that product differentiation by country of origin and end use was important and that average annual wheat prices were influenced by protein content.…”

Section: Introductionmentioning

confidence: 99%

Economic substitution for US wheat food use by class*

Marsh

2005

Aus J Agri & Res Econ

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Wheat for food use is conceptualised as an input into flour production and demand is derived from an industry profit function to quantify price responsiveness and economic substitutability across wheat classes. Price and substitution elasticities are estimated for hard red winter, hard red spring, soft red wheat, soft white winter and durum wheat. In general, hard red winter and spring wheat varieties are much more responsive to their own price than are soft wheat varieties and durum wheat. Substitution elasticities indicate that hard red winter and hard red spring wheat are economic substitutes for milling purposes.

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“…Although the results of studies on this subject in the international literature differ, the protein content seems to be the common and most important characteristic quality in the determination of wheat prices (Veeman 1987;Mercier 1993;Uri and Hyberg 1996). Larue (1991) showed that the marginal implicit value of protein varied depending on the wheat classification and in time. Wilson (1989) demonstrated that it could change depending on the destination market (Stingert and Blane 1997) analysed the demand for the wheat protein in relation to five classes of wheat Hedonic price analysis of the quality characteristics of the Anatolian Hard Red Wheat in the Japanese import market.…”

mentioning

confidence: 99%

Hedonic price analysis of the quality characteristics of Anatolian hard red wheat

Karaman¹,

Yavuz²

2014

AGR ECON-CZECH

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Th e study analyses the relations between the quality characteristics and price of the Anatolian Hard Red Wheat. It uses a data set consisting of the price and eight quality characteristics of the Anatolian Hard Red Wheat traded in spot transaction in each month of 2011 in the Polatli Commodity Exchange. Marginal implicit values of the quality characteristics of the Anatolian Red Hard Wheat traded in the spot market of the Polatli Commodity Exchange are determined through the hedonic price model. Th is model is estimated from the linear-log functional form. Results of the hedonic price model demonstrate that the quality characteristics, which are statistically signifi cant in the determination of price, namely, the protein content, the hectolitre weight, and the grain content damaged by pests and wheat bugs, are important factors in the purchasing decisions of fl our millers. As the protein content and the hectolitre weight of wheat increase by 1%, the price increases by TL 0.005 and TL 0.006, respectively. As the grain content damaged by pests and wheat bugs increases by 1%, the price of wheat drops by TL 0.0002. Th ese marginal implicit values are expected to encourage wheat producers to produce the higher quality wheat.

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Is Wheat a Homogeneous Product?

Cited by 53 publications

References 9 publications

Market Delineation and Price Leadership in the World Wheat Market: A Cointegration Analysis

Market Delineation and Price Leadership in the World Wheat Market: A Cointegration Analysis

Economic substitution for US wheat food use by class*

Hedonic price analysis of the quality characteristics of Anatolian hard red wheat

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