Vertical Price Transmission in Soybean, Soybean Oil, and Soybean Meal Markets

Soybean is becoming a prominent agricultural industry due to its versatility of use as inputs for different industrial sectors. Soybean products have a high value and are profitable since its huge supply and wide demand. The soybean economic value does belong to the commercial use of its joint produ...

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Autores principales:	Josua Desmonda Simanjuntak, Stephan von Cramon-Taubadel, Nunung Kusnadi, Suharno
Formato:	article
Lenguaje:	EN ID
Publicado:	Bogor Agricultural University 2020
Materias:	Agriculture (General) S1-972 Business HF5001-6182
Acceso en línea:	https://doaj.org/article/13baf534408548ab8efc93424793f504
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spelling	oai:doaj.org-article:13baf534408548ab8efc93424793f5042021-11-04T04:20:00ZVertical Price Transmission in Soybean, Soybean Oil, and Soybean Meal Markets1693-58532407-252410.17358/jma.17.1.42https://doaj.org/article/13baf534408548ab8efc93424793f5042020-03-01T00:00:00Zhttps://jurnal.ipb.ac.id/index.php/jmagr/article/view/29789https://doaj.org/toc/1693-5853https://doaj.org/toc/2407-2524Soybean is becoming a prominent agricultural industry due to its versatility of use as inputs for different industrial sectors. Soybean products have a high value and are profitable since its huge supply and wide demand. The soybean economic value does belong to the commercial use of its joint products, soybean meal, and soybean oil. Joint product theory assumes the price of soybeans can be represented as a weighted average of returns from soybean meal and soybean oil less than the processing margin. This indicates there are price relationships between soybean as a raw product towards its meal and oil through crush processing. Therefore, the objective of this research is to investigate the price transmission between these three products and analyzed factors that influencing them. Monthly time series data in respect of international prices were obtained. Augmented Dickey-Fuller (ADF) test and the Johansen cointegration technique were utilized to test the stationarity and the long-run relationship between three variables respectively. The result indicates the existence of one cointegrating long-run equilibrium relationship between these variables. The Vector Error Correction Model (VECM) estimates revealed that soybean price is the only one that reacts to correct equilibrium since oil and meal have huge markets. Keywords: soybean, soybean meal, soybean oil, joint product, VECMJosua Desmonda SimanjuntakStephan von Cramon-TaubadelNunung KusnadiSuharnoBogor Agricultural UniversityarticleAgriculture (General)S1-972BusinessHF5001-6182ENIDJurnal Manajemen & Agribisnis, Vol 17, Iss 1, Pp 42-42 (2020)
institution	DOAJ
collection	DOAJ
language	EN ID
topic	Agriculture (General) S1-972 Business HF5001-6182
spellingShingle	Agriculture (General) S1-972 Business HF5001-6182 Josua Desmonda Simanjuntak Stephan von Cramon-Taubadel Nunung Kusnadi Suharno Vertical Price Transmission in Soybean, Soybean Oil, and Soybean Meal Markets
description	Soybean is becoming a prominent agricultural industry due to its versatility of use as inputs for different industrial sectors. Soybean products have a high value and are profitable since its huge supply and wide demand. The soybean economic value does belong to the commercial use of its joint products, soybean meal, and soybean oil. Joint product theory assumes the price of soybeans can be represented as a weighted average of returns from soybean meal and soybean oil less than the processing margin. This indicates there are price relationships between soybean as a raw product towards its meal and oil through crush processing. Therefore, the objective of this research is to investigate the price transmission between these three products and analyzed factors that influencing them. Monthly time series data in respect of international prices were obtained. Augmented Dickey-Fuller (ADF) test and the Johansen cointegration technique were utilized to test the stationarity and the long-run relationship between three variables respectively. The result indicates the existence of one cointegrating long-run equilibrium relationship between these variables. The Vector Error Correction Model (VECM) estimates revealed that soybean price is the only one that reacts to correct equilibrium since oil and meal have huge markets. Keywords: soybean, soybean meal, soybean oil, joint product, VECM
format	article
author	Josua Desmonda Simanjuntak Stephan von Cramon-Taubadel Nunung Kusnadi Suharno
author_facet	Josua Desmonda Simanjuntak Stephan von Cramon-Taubadel Nunung Kusnadi Suharno
author_sort	Josua Desmonda Simanjuntak
title	Vertical Price Transmission in Soybean, Soybean Oil, and Soybean Meal Markets
title_short	Vertical Price Transmission in Soybean, Soybean Oil, and Soybean Meal Markets
title_full	Vertical Price Transmission in Soybean, Soybean Oil, and Soybean Meal Markets
title_fullStr	Vertical Price Transmission in Soybean, Soybean Oil, and Soybean Meal Markets
title_full_unstemmed	Vertical Price Transmission in Soybean, Soybean Oil, and Soybean Meal Markets
title_sort	vertical price transmission in soybean, soybean oil, and soybean meal markets
publisher	Bogor Agricultural University
publishDate	2020
url	https://doaj.org/article/13baf534408548ab8efc93424793f504
work_keys_str_mv	AT josuadesmondasimanjuntak verticalpricetransmissioninsoybeansoybeanoilandsoybeanmealmarkets AT stephanvoncramontaubadel verticalpricetransmissioninsoybeansoybeanoilandsoybeanmealmarkets AT nunungkusnadi verticalpricetransmissioninsoybeansoybeanoilandsoybeanmealmarkets AT suharno verticalpricetransmissioninsoybeansoybeanoilandsoybeanmealmarkets
_version_	1718445314580414464

Vertical Price Transmission in Soybean, Soybean Oil, and Soybean Meal Markets

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