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Abstract

Consumer perceptions of the potential negative side effects to the body and to the environment as well as consumer opinion regarding ethical issues of developing transgenic products has caused melee at times in the food marketing chain. This has prompted some firms, e.g., Frito Lay and Gerber, to publicly announce that grains and oilseeds produced using transgenic seed will not be used as an ingredient in the production of food. This research found little to support the notion that agro-biotechnology news and/ or recall/non-use announcements affected the CBOT corn futures market. As hypothesized, this result suggests that the market for non-transgenic corn is small relative to aggregate corn supply and demand, which the CBOT corn futures market represents.

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