Files
Abstract
The EU is a major player in the global wheat market. This paper examines the pricing
behavior of EU wheat exporters using a pricing-to-market (PTM) analysis. Wheat is
an exemplary product for testing PTM theories as it is widely and frequently traded,
and it is largely unbranded. We estimate the relationship between export unit values
and exchange rates using quarterly panel data for 11 export destinations for 2000-
2013. Results show that there is a meaningful long-run relationship between export
unit values and exchange rates, but there is little evidence of differential mark-ups
between export markets. Belarus and Iceland are exceptions where the EU exercises
local currency price stabilization.