Price formation within Egypt's wheat tender market: Implications for Black Sea exporters

Maximilian Heigermoser; Linde Götz; Miranda Svanidze

doi:10.1111/agec.12656

journal article Open Access Jul 15, 2021

Price formation within Egypt's wheat tender market: Implications for Black Sea exporters

Maximilian Heigermoser Linde Götz Miranda Svanidze

Agricultural Economics Vol. 52 No. 5 pp. 819-831 · Wiley

View at Publisher Save 10.1111/agec.12656

Abstract

AbstractBlack Sea wheat exporters, led by Russia, dominate Egypt's wheat imports via a tender system. The tenders are managed by the GASC and their outcomes are communicated worldwide by financial news agencies. Building on a transaction‐specific dataset on GASC tenders (2011 ‐ 2019), results of our cointegration analysis find wheat export markets of Russia, France and the USA highly integrated with the GASC tender price. Estimates from the multivariate VECM indicate strong price interdependencies between the GASC tender price and Russian and French export prices, indicating fierce competition in the GASC tender market. Despite the high market share of wheat exporters in the Black Sea region and Russia in particular, tests on weak exogeneity suggest a leading role of the French wheat export price. We further find that leadership of US wheat prices is weak in the GASC tender market.

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Details

Published: Jul 15, 2021
Vol/Issue: 52(5)
Pages: 819-831
License: View

Authors

M

Maximilian Heigermoser

Department Agricultural Markets Leibniz Institute of Agricultural Development in Transition Economies (IAMO) Halle (Saale) Germany

L

Linde Götz

Department Agricultural Markets Leibniz Institute of Agricultural Development in Transition Economies (IAMO) Halle (Saale) Germany

M

Miranda Svanidze

Department Agricultural Markets Leibniz Institute of Agricultural Development in Transition Economies (IAMO) Halle (Saale) Germany

Cite This Article

Maximilian Heigermoser, Linde Götz, Miranda Svanidze (2021). Price formation within Egypt's wheat tender market: Implications for Black Sea exporters. Agricultural Economics, 52(5), 819-831. https://doi.org/10.1111/agec.12656

Price formation within Egypt's wheat tender market: Implications for Black Sea exporters

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