Crude Oil Prices and US Crop Exports: Exploring the Secondary Links between the Energy and Ag Markets

Date
2016-04-01
Authors
Zhang, Wendong
Hart, Chad
Zhang, Wendong
Hart, Chad
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Altmetrics
Authors
Research Projects
Organizational Units
Journal Issue
Journal Issue
Series
Department
Center for Agricultural and Rural Development
Abstract

As the biofuel industry has developed, there has been a lot of discussion about the linkages between the energy and agricultural markets. The growth of the ethanol and biodiesel sectors bolstered the connection among the oil, gas, and crop markets. As crop-based biofuels compete in the energy market, crop prices are directly impacted not only by the relative standing of biofuels in the fuel hierarchy, but also by general shifts in energy supplies and demands. However, there is another distinct way energy markets can impact crop markets—many US international trade partners are reliant on the energy sector as a major source of income. Thus, energy market swings can translate into significant income movements for those countries, influencing their ability to purchase US agricultural products. In this article, we examine the robustness of treating a key energy commodity—crude oil—as an indicator for income for those oil-reliant countries and investigate how that affects their demand for US crop exports.

Comments
Description
Keywords
Citation
DOI
Source
Collections