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This article concerns the issue of price sensitivity on the global wheat market, understood as the ratio of the change in prices to the change in the volume of harvests and stocks as supply variables. This sensitivity was investigated using a model approach, applying it to the market as a whole and to exporting and importing countries. To capture the essence of this sensitivity, a simplifying assumption was made about demand as an a priori given variable. The results of the study indicate that with large amplitudes of changes in both the volume of harvests and stocks as well as price levels, the level of price sensitivity, i.e., how prices react in percentage terms to a 1% change in harvests and stocks, is relatively low. At the same time, this sensitivity is greater for harvests than for stocks. The aim of the study is to present general trends in the price sensitivity coefficient. The period of empirical analysis covers almost 60 years. The results of the study are of both cognitive and utilitarian significance, in particular for methods of prediction and forecasting of the market situation and for agricultural policy formulation. It is also a politically important issue at the moment.

Income and prices are important factors that determine and decide households consumption decisions and behavior.

This study investigates the transmission of risk shocks between China’s stock and currency markets with global commodities (including crude oil, natural gas, gold, silver, copper, palladium, and platinum) over time and across different frequencies, while accounting for the role of China’s economic policy uncertainty (EPU), from January 1, 2016, to June 30, 2022. Our findings reveal that both the time and frequency domain total connectedness index varies over time and suggest that both China’s stock and currency markets can provide more hedge advantage for turmoil periods. Return shocks between global commodities and China’s stock and currency markets have short-lasting effects when considering the frequency domain connectedness analysis. These return shocks typically originate from China’s stock market and currency and transmit to the commodity market, except for natural gas. Additionally, an increase in China’s EPU indicates bad news for the overall connectedness of all considered markets and the gold and silver markets. [ABSTRACT FROM AUTHOR]

When describing the state of the modern world, we can name it “marginal”, i.e. the one where there are hardly any orientations, with organizations having to face barriers in the business processes, which makes them constantly revise the strategies, methods or approaches to the achievement of their goal. It was in 2016 that Jamais Cascio, a futurologist and a researcher from the Institute of Future, brought forward a new conception being in perfect conformity with the present-day situation, dominated by the pandemic provoked by COVID-19, political imbalances, resource deficit, climatic disasters and the war that keeps us in tension. The new term that he proposed to use consisted of the abbreviations, i. e. BANI (brittle, anxious, nonlinear, incomprehensible world without a clear structure). Given that the development of organizations in BANI environment requires from managers the ability to use a symbiosis of various administrative competencies, the article defines the essence of various categories of competencies needed by an effective manager of today and analyses specific ways of their fostering in BANI environment. Three groups of competencies required for an effective manager were outlined. The analysis of conditions in which the Ukrainian business had to operate in the first year of the Russian-Ukrainian war, when businessmen and managers had to take administrative decisions concerned with the fate of their organizations and employees in the situation of survival, to exert extreme effort due to the simultaneous change in many business aspects and the impracticability of any kind of projection, with lack of mental and emotional support, allowed for categorizing the Ukrainian business environment in time of the war as BANI environment. Many companies had to close, but many of them could transfer their facilities and adapt to the present-day realities, change the vector of management and even introduce on new markets in spite that the Ukrainian economy had reduced by one third. This could be possible thanks to skilful actions of managers. The authors’ research allowed for a revision of the key competencies of effective managers in BANI environment with consideration to the Ukrainian realities for doing business. A set of administrative competencies allowing companies for not only keep afloat but to develop new business processes in the realities of war was defined. It is stressed that today Ukrainian managers are urgently in need to develop administrative competencies that help support and expand business, bring the staff together in consolidated and highly professional teams, set up business communications.

Abstract Farmer Producer Organizations (FPOs) perform the key role of bargaining for farmer members, enhancing the economies of scale and providing flexibility to farmers in terms of price. Marketplace platforms such as eNAM and NCDFI eMarket operate pan-India to facilitate trade among FPOs and other stakeholders to enhance their efficiency. This research aims to study the operations of existing models using the case of maize and examine eMarkets from the perspective of FPOs. Further, an innovative eAuction model for eMarkets is proposed based on the study, which addresses the concerns of the FPOs and provides the option of selling their produce from farms. [ABSTRACT FROM AUTHOR]

Existing literature has relied on economic fundamentals (EFs) to determine commodity price booms and busts. This framework has been unable to account for major economic non-fundamentals (ENFs). This study takes a broader view of major ENFs that expands beyond the traditional demand and supply indicators to evaluate the response of commodity price booms and busts at both aggregate and disaggregate levels. To obtain consistent estimates, this study utilizes the advantages of the dynamic fixed-effect within instrumental variable method as an estimator to evaluate the behavior of 37 agricultural, energy, and metal commodity prices over 1980–2020. Our results indicate that relative to EFs, ENFs are the predominant driving force of commodity price booms and bursts at aggregate levels. In the case of EFs, the demand-side stimulates commodity prices, whereas the supply-side tends to depress them; however, the former effect tends to outweigh the latter effect. However, on the ENFs front, the dollar-denominated variable is one of the most powerful factors behind commodity price soars and bursts. Meanwhile, at the disaggregate level, the impact of EFs and ENFs is in tandem with that of the aggregate-level commodities. However, world uncertainty tends to depress the prices of energy and metal commodities. Our analysis implies that global demand and supply generated booms and busts in commodity prices have macroeconomic effects on both exporting and importing economies. Along with that, policymakers may need to consider the role of the rise and fall in the value of the dollar as well as that of the financialization of commodities, which were found to have a significant effect on commodity price booms and busts. Countries thus need to devise policies that may help moderate the negative effects of world uncertainty and geopolitical risk.

Indian agricultural commodity futures have seen declining volumes over the last ten years. Several studies in the literature have suggested that this may be due to their hedging effectiveness being, in general, low. To prevent manipulation, location options are embedded into such commodity futures allow for the short position holder at expiration to deliver several non-par assets in addition to the par asset. Choices of delivery specifications pertaining to the location option can impact hedging effectiveness of the futures contract. We use a Monte Carlo approach to guide the choice of these delivery specifications including the number of deliverable assets, their inter-se correlations, discounts incurred for delivery of non-par assets and contract life, with the goal of optimizing hedging effectiveness of futures. We also corroborate the results of simulations with empirical evidence. The simulations, while confirming some of the empirical results in the literature also suggest several additional insights for the optimal selection of contract delivery specifications and provide contract designers with comprehensive guidelines for making choices of contract delivery specifications. These results also confirm the necessity for regulators and exchanges to focus on and constantly optimize delivery specifications of such futures contract to make them more useful for hedgers by improving their hedging effectiveness. [ABSTRACT FROM AUTHOR]

Agri commodities have been investigated in the past to determine their inter-relationships. However, no study has checked their risk spillover/connectedness for six decades using extreme quantiles. Various shocks (positive/negative) often pose challenges to these commodities over the past six decades. Such shocks’ impact is usually observed in extreme quantiles or tails. Therefore, we have investigated fourteen agri commodities (namely Coffee, Cocoa, Soyabean, Wheat, Sugar, Orange, Chicken, Beef, Maize, Tea, Coconut Oil, Groundnut Oil, Palm Oil & Rice) from January 1, 1960 to June 1, 2022 (covering 62 years on a monthly basis), deploying Quantile VAR or QVAR as suggested by [1](extended [2,3] calibration). We found that the risk spillover/connectedness never came down for these Agri commodities. It is always at a higher level (more than 55%) proving that agri commodities remain vulnerable to various shocks throughout. Spillover looks symmetric as both the extreme tails enjoy about 92–93% connectedness levels, whereas the median is below 60%. Rice, Orange Juice, Chicken, Tea and Groundnut Oil were consistent net receivers across such a long-time frame, whereas Palm Oil, Soyabeans, Maize and Wheat were net emitters all through. Further, we found decreasing complexity (network connectedness reduction) with increased quantiles. Since these findings are over such an extended period, policy decisions can be made based on them.

This study investigates the determinants of coffee prices received by growers in Costa Rica, paying attention to the impact of environmental, regional, quality, and international aspects in a panel data set for the period 2008–2016. We identify three groups of variables that affect domestic coffee prices. Some of them are external to the control of the coffee growers, such as the international price of green coffee or the power of multinationals; others, such as the altitude where the coffee is harvested or the berries' yield, are related to coffee quality but difficult to modify by coffee growers. The focus of our study is on the third group, which refers to differentiation strategies related to environmental certifications. More specifically, we consider two particularly relevant certifications, which are Fairtrade mills and organic coffee. We find that organic coffee berries received higher prices, but Fairtrade mills report lower average prices than other, non-certified, buyers. [ABSTRACT FROM AUTHOR]

In Sweden, mining of metallic mineral resources goes back at least 1000 years, possibly much longer. This paper reviews the development of exploration over the past 500 years and discusses exploration based on 1) demand and price, 2) technical development, and 3) legislation. Without doubt, exploration efforts have been driven by an early demand, especially from the Swedish crown and well-known mines such as Falun copper mine and Sala silver mine sustained the Swedish crown and financed several wars during the seventeenth and eighteenth centuries for several centuries. The fluctuation in metal prices, basically a function of demand, due to technical development and industrialization, has been an important driver for the focus of exploration over the last 100 years, and even more so during the last 50 years when exploration, besides base metals and iron, has focussed on more critical raw materials for the energy transition and green technology. The technical development has also meant that new methods have become available for exploration, not the least deep exploration methods and Swedish innovations have played a major role in drilling technology, geophysical instrument development and other areas. This is discussed based on development in drilling technology, geological, geophysical and geochemical methods. Finally, a review of the how the mining legislation has changed over the last 500 years is provided where this is placed in the context of how it has influenced private investment in exploration and what role the Swedish state has played. [ABSTRACT FROM AUTHOR]

Voluntary carbon markets (VCMs) have emerged as a preferred market mechanism to support the global economy's transition to a low carbon future. Trading in carbon offset derivatives has moved into the financial mainstream with commodity exchanges now offering trading in VCM futures. This paper discusses the historical background of carbon trading, the market ecosystem of companies and organizations that provide the necessary infrastructure, and the evolution of VCM derivatives, focusing on CME Group listed instruments. The paper discusses findings that show that exchange-traded derivatives products can lead to increased standardization, transparency, and price discovery in nascent VCMs. We review academic literature published in this growing field of research and conclude by providing recommendations for areas of further market development and research.