Market Power in <scp>I</scp>nternational Commodity Trade: The Case of <scp>C</scp>offee

Igami, Mitsuru

doi:10.1111/joie.12076

Cited by 32 publications

(24 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Brazil_Drought , Brazil_Frost , and Coffee_Rust are dummy variables set to 1 during extreme weather episodes in Brazil or amid the rust epidemic in Colombia (January 2008 to October 2011) and Central America (November 2012 to September 2014). Each dummy takes the value 0 in regular times and 1 otherwise; the Brazil_Frost dummy's construction is inspired by Igami ().…”

Section: Potential Drivers Of Price Uncertainty and Cross‐market Linkmentioning

confidence: 99%

Sugar with your Coffee? Fundamentals, Financials, and Softs Price Uncertainty

Covindassamy

Robe

Wallen

2017

Journal of Futures Markets

View full text Add to dashboard Cite

We investigate empirically the main factors related to coffee and sugar (“softs”) price uncertainty. We link physical market fundamentals as well as financial variables to (i) market expectations of future price volatility and (ii) the extent to which these two commodities both co‐move with equities. The physical market fundamentals that matter include the state of inventories, weather, and disease outbreaks. Beyond these fundamental factors, our results highlight the crucial role of financial market sentiment in understanding cross market linkages and the magnitude of softs market uncertainty. © 2017 Wiley Periodicals, Inc. Jrl Fut Mark 37:744–765, 2017

show abstract

Section: Potential Drivers Of Price Uncertainty and Cross‐market Linkmentioning

confidence: 99%

Sugar with your Coffee? Fundamentals, Financials, and Softs Price Uncertainty

Covindassamy

Robe

Wallen

2017

Journal of Futures Markets

View full text Add to dashboard Cite

show abstract

“…This is how they infer that the producers are not setting prices collusively and also how they infer that producers stipulate retail prices (illegal in France) and set two‐part wholesale prices. Other studies similarly inferring producer pricing behaviour from estimates of demand combined with cost data include Nevo ( (breakfast cereal)), Genesove and Mullin ( (sugar)), Igami ( (coffee)) and Argentesi and Filistrucchi ( (newspapers in Italy)).…”

Section: Resale Price Maintenancementioning

confidence: 99%

Resale Price Maintenance by Japanese Newspapers

Flath

2016

The Japanese Economic Review

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. In Japan, newspapers enjoy a special exemption from antimonopoly prohibitions against resale price maintenance (suppliers' stipulations that bar downstream firms from price discounting), but are each required to set uniform prices throughout Japan. In fact, the newspapers have rarely changed their subscription prices in recent years, and the three leading national dailies, together accounting for about half the total industry circulation, and thirteen other papers accounting for another one eighth of industry circulation, all have set exactly the same price (3,925 yen per month). The remaining local papers all set lower prices. The authorized resale price maintenance, and prohibition against prices that vary geographically, have allowed collusive price increases that I here estimate to be around 500 yen per month, entailing economic waste of about 300-billion yen ($3-billion) per year but adding only around 16-billion yen per year to newspaper profit. The increased profit margin on subscriptions is much offset by reduced sale of ads. Terms of use: Documents inJEL codes: D4,L4

show abstract

“…A long line of research seeks to understand the price dynamics of commodities in general and softs in particular -see, e.g., Mehta and Chavas (2008) and Igami (2015) in the case of coffee and see Cafiero, Bobenrieth, Bobenrieth, and Wright (2015) in the case of sugar. The present paper is, to our knowledge, the first to systematically investigate the factors related to market expectations of softs price volatility expectations.…”

Section: Related Literaturementioning

confidence: 99%

“…In an analysis of the impact on prices of the International Coffee Agreement, a cartel, Igami (2015) proposes to take the impact of a severe ("white") frost into account by setting a dummy variable equal to 1 in the two years following the frost. We follow that approach to account for the two white frosts that hit Brazilian Arabica coffee-growing areas in 1994, on the nights of June 25-26 and July 9-10.…”

Section: Weathermentioning

confidence: 99%

“…Brazil_Drought, Brazil_Frost, and Coffee_Rust are dummy variables set to 1 during extreme weather episodes in Brazil or amid the rust epidemic in Colombia (Jan. 2008to Oct. 2011) and Central America (Nov. 2012to Sept. 2014. Each dummy takes the value 0 in regular times and 1 otherwise; the Brazil_Frost dummy is estimated as in Igami (2015). Mad_Cow_1 and Mad_Cow_2 are two dummies set equal to 1 for the first two weeks of, respectively, the Canadian and U.S. episodes of mad cow disease (bovine spongiform encephalopathy, or BSE) in 2003, as described in Adjemian, Bruno, Robe, and Wallen (2016).…”

Section: Notesmentioning

confidence: 99%

See 1 more Smart Citation

Sugar With Your Coffee?: Financials, Fundamentals, and Soft Price Uncertainty

Covindassamy¹,

Robe²,

Wallen³

2017

View full text Add to dashboard Cite

work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose, as provided below. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Following a peer review process, and with previous written consent by the Inter-American Development Bank (IDB), a revised version of this work may also be reproduced in any academic journal, including those indexed by the American Economic Association's EconLit, provided that the IDB is credited and that the author(s) receive no income from the publication. Therefore, the restriction to receive income from such publication shall only extend to the publication's author(s). With regard to such restriction, in case of any inconsistency between the Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives license and these statements, the latter shall prevail.Note that link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent. We thank Osmel Manzano, Guillermo Lagarda Cuevas, and Scott Irwin for helpful discussions, and brownbag seminar participants at the Inter-American Development Bank (IDB) and the U.S. Commodity Futures Trading Commission (CFTC) for helpful comments and suggestions. We are grateful to Casey Petroff for her help with the public trader position data, to Emré Robe for his help with the construction of the weather variables, and to Lutz Kilian for his help with indicators of global economic conditions. The first draft of this paper was written while Robe was a consultant to, and Covindassamy was a research assistant at, the IDB. Robe was also a consulting senior economist with the CFTC during the same period. No CFTC compensation was received, and no CFTC resources or proprietary information were used, for this project. The opinions expressed in this paper are those of the authors: they do not reflect the views of other CFTC staff, the Commission itself, or the United States government; or the IDB or the shareholder governments. Errors and omissions, if any, are the authors' sole responsibility. 1Sugar with your Coffee? Financials, Fundamentals, and Softs Price Uncertainty AbstractWe investigate empirically the factors related to price uncertainty in the markets for two key Central American commodities: coffee and sugar ("softs"). Specifically, we analyze the predictive powe...

show abstract

Market Power in International Commodity Trade: The Case of Coffee

Cited by 32 publications

References 37 publications

Sugar with your Coffee? Fundamentals, Financials, and Softs Price Uncertainty

Sugar with your Coffee? Fundamentals, Financials, and Softs Price Uncertainty

Resale Price Maintenance by Japanese Newspapers

Sugar With Your Coffee?: Financials, Fundamentals, and Soft Price Uncertainty

Contact Info

Product

Resources

About