Influence of investment funds on soybean price formation on the Chicago Grain Exchange

Authors

DOI:

https://doi.org/10.24302/drd.v12.3260

Abstract

This article aimed to study about the theme of investment funds and its influence on the price formation of soybeans at the Chicago Cereal Exchange (CBOT). The main objective was to answer the empirical problem, verified some years ago, that the normal elements of supply and demand have less influence on the formation of these prices, with stronger speculative elements present in the scenario. In other words, we tried to verify to what extent investment funds (and even other funds) influence the price formation of soybeans in Chicago. Therefore, the methodology used consisted of quantitative analysis techniques, mainly from correlation and regression analysis between the future price of soybean grain in CBOT and the various trader groups that trade in CBOT. Among the results obtained, a strong influence of the funds on the formation of soybean prices in Chicago was confirmed, and the sum of the main categories of speculative traders influences this price formation by more than 50%. This paper contributes with relevant empirical findings that highlight the importance of speculative movement in the formation of soybean grain prices.

Keywords: Investment Funds. Soybean. Chicago Board Of Trade. Regional Economy. Correlation.

Author Biographies

Argemiro Luis Brum, UNIJUI

Professor titular junto ao PPGDR da UNIJUI, doutor em Economia Internacional pela EHESS de Paris (França). Ijuí – RS – Brasil.

Daniel Knebel Baggio, UNIJUI

Professor titular junto ao PPGDR da UNIJUI e do PPGGEO da URI, Doutor em contabilidade e finanças pela Universidade de Zaragoza-Espanha. Ijuí. Rio Grande do Sul. Brasil.

Isoé Nicolas Schneider, Universidade de Zaragoza

Doutorando em Contabilidade e Finanças, na Universidade de Zaragoza-Espanha, mestre em Desenvolvimento Regional pela UNIJUI. Zaragoza. Aragón. Espanha.

Francisca Mendonça Souza, Instituto Universitário de Lisboa (ISCTE-IUL) – Portugal

Professora de Pós-Graduação na UNIJUI, doutora em Estatística e Análise de Dados - Econometria pelo Instituto Universitário de Lisboa (ISCTE-IUL) – Portugal, Investigadora da Universidade da Beira Interior –UBI/Portugal. Lisboa – Portugal.

Eduardo Luis Goulart Knebel, UNIJUI

Graduando em Agronomia pela UNIJUI, bolsista PIBIC/CNPq. Ijuí. Rio Grande do Sul. Brasil.

Karla Leticia Morais da Silva, UNIJUI

Graduanda em Administração pela UNIJUI, bolsista PIBIC/CNPq. Ijuí. Rio Grande do Sul. Brasil.

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Published

2022-03-04

How to Cite

Brum, A. L., Baggio, D. K., Schneider, I. N., Souza, F. M., Knebel, E. L. G., & Silva, K. L. M. da. (2022). Influence of investment funds on soybean price formation on the Chicago Grain Exchange. DRd - Desenvolvimento Regional Em Debate, 12, 1–23. https://doi.org/10.24302/drd.v12.3260

Issue

Vol. 12 (2022)

Section

Artigos

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