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Abstract
Using five monthly revisions to USDA
crop forecasts (Jul, Aug, Sep, Oct, & Nov),
we estimate own‐ and cross‐commodity
short‐run demand flexibilities for six
domestic agricultural commodities. Our
findings indicate that the corn supply
influences the expected harvest‐time price
of virtually every other major field crop.
Moreover, as the share of the corn crop
devoted to ethanol production grows, corn
and soybean prices become more flexible,
while the reverse it true for wheat and
oats.