Grain Price Interrelationships

U S grain prices affect one another This study uses Haugh-Pierce chi-square tests, bivariate autoregressive models, and dynamic multipliers to measure the extent of these effects Rice prices exhibit very little reaction to changes in other grain prices However, other grain prices relate closely to one another Corn and wheat prices tend to significantly affect other grain prices Feed-grain prices move together as they reflect changing market conditions Results indicate that the U S markets function with a relatively low level of inefficiency