Big inventory adjustment, big price spike

It is odd to have such a large inventory adjustment this late in the season.  Usually, most of the news about the size of crop is out by September.


What happened?

For economics geeks, this does provide a fairly powerful natural experiment for measuring the fundamental relationship between inventories and prices, since this large short-run move in prices likely has very little to do with a shift in demand.

Comments

Post a Comment

Popular posts from this blog

Nonlinear Temperature Effects Indicate Severe Damages to U.S. Crop Yields Under Climate Change

Renewable energy not as costly as some think

Answering Matthew Kahn's questions about climate adaptation