Life Sciences Commons^™

Factors Influencing Price Volatility On Soybeans Futures Prices, Diego J. Gavilanez Hernandez

LSU Master's Theses

Recent unexpected changes (mid-2007- Aug 2011) in agricultural commodity markets have led stakeholders to ask if the volatility of futures prices currently observed are still the result of traditional fundamentals. Consequently, the purpose of this research was to identify those factors that affect monthly soybeans futures price volatility. To accomplish this study, four relevant factors are explored. First, the integration between energy and agricultural markets is accounted for via oil spot prices, as well as a dummy variable to account for the shift in the U.S renewable fuel policy since 2007. Second, the increasing consumption of commodities from China is …