Despite frequent debates on commodity prices, limited attention has been paid to the processes, strategies and practices through which commodity prices are 'made' and related institutions and infrastructures. 'World commodity prices' are not passively 'discovered' but are outcomes of contested...

In this article, we examine performance persistence and the implied volatility smile of the commodity options contracts. We examine contracts of wheat, corn, live cattle, soybean oil, and lean hog. Hedge funds use options and futures in terms of commodities to hedge market risk. We compare the...

J.M. Keynes coined the term normal backwardation, a situation where a futures price for a particular expiry month is less than the expected spot price for that month. He argued hedgers pay speculators a premium for assuming price risk. We study the behavior of commodity futures before and since...

We investigate the changes in volatility leverage and spillover effects of three crude oil futures markets—WTI, Brent, and Oman—under the 2022 Russia-Ukraine conflict. We find that this conflict eliminates the regular leverage effect in WTI and Brent markets, slightly increases and...

The magnitude and sign of risk premiums provide relevant information on the structure of a given market. However, there is no consensus on commodity markets if there is a risk premium, and if so, if it is positive or negative. In addition, in recent years, there has been a discussion on the...