Asymmetric price transmission: analysis for brazilian soybean producer 2011/2017/Transmissao assimetrica de precos: analise para o produtor de soja brasileiro de 2011/2017

• Published in: GeSec : Revista de Gestão e Secretariado 2023-08, Vol.14 (8), p.12859
• Main Authors: Presotto, Elen, Freitas, Clailton Ataides de, Oliveira, Sibele Vasconcelos de
• Format: Article
• Language: Portuguese
• Subjects: Soybean; Soybean industry
• ISSN: 2178-9010; 2178-9010
• DOI: 10.7769/gesec.v14i8.2581

Soybean commercialization is diffused around the world and with this it is expected that between markets there is price transmission. In the presence of market failures such as market power, information asymmetry and adjustment costs, Asymmetric Price Transmission (APT) can reveal itself as a behavior between markets, in which an agent benefits from an increase in its own welfare in relation to another market level. This article seeks to investigate the process of spatial price transmission between the international market and the Brazilian soybean producer, especially, testing the hypothesis of the presence of APT, focusing on the price oscillations suffered by the national soybean producer. The panel data methodology proved to be efficient in diagnosing the structural conjuncture of the price transmission process. The results point to the presence of APT in the long run, and it is possible to diagnose the presence of contemporaneous impact symmetry in the short run. Finally, knowing the process of price transmission between markets is of fundamental importance for the national soybean producer, since he can anticipate the probable price movements, reducing the risk in the commercialization of his production.