Analyzing commodity market dynamics, we observe that price volatility increases with reduced contract duration. In this paper, we derive a theoretical model depicting the price formation in two markets with altering product granularity. Supplemented by empirical evidence from German electricity...

Dieser Artikel diskutiert die Gründe der aktuellen Preisverfälle auf Industrierohstoffmärkten, sowie deren volkswirtschaftliche Auswirkungen auf Deutschland und rohstoffexportierende Länder.

This study investigates the effects of oil price shocks on volatility of selected agricultural and metal commodities. To achieve this goal, we decompose an oil price shock to its underlying components, including macroeconomics and oil specific shocks. The applied methodology is the structural...

Based on recent evidence of fractional cointegration in commodity spot and futures markets, we investigate whether a fractionally cointegrated model can provide statistically and/or economically significant forecasts of commodity returns. Specifically, we propose to model and forecast commodity...

The functioning of commodity markets has changed related to processes of financialization that involve two major developments - the rise of financial interest on commodity derivative markets through the increasing presence of financial investors and the changing business models of international...

Examines how efficient the current system of world trade is in distributing resources from the geographical locations of supply to the locations of demand. By examining trade from a biophysical (versus an economic) viewpoint, the authors of the report seek to assess whether or not trade allows...

Introduction -- The historical framework -- The geography of commodity production and trade -- Comparative advantage and the trade policy distortions -- The fossil fuels -- Price formation and price trends in commodities -- Commodity booms -- The commodity exchanges, commodity investments and...

The role of futures markets in stabilizing spot prices has been extensively discussed. Nevertheless, the ability of these markets to achieve the stabilizing function significantly depends on whether they are "efficient" in the sense that futures prices "fully reflect" the available information....

The largest Commodity Trading Houses account for a large and increasing share of international trade, linked arguably to their financialization and - according to some commentators - giving rise to issues of 'systemic importance' similar to those applying to large investment banks. This paper...