Effects of Barge Shocks on Soybean Basis Levels in Arkansas: A Study of Market Integration.

摘要

The response of Arkansas, Memphis and Gulf soybean basis levels to barge rate shocks are investigated. Results suggest basis levels react negatively to an increase in the barge rate-implying the burden of higher transportation costs are at least in part transmitted to the farm level. In addition, Gulf soybean shocks, which reflect unexpected changes in soybean export demand, are also transmitted to internal markets, and result in correspondingly higher Arkansas basis levels. The system dynamics, which show simultaneous basis movements across Arkansas locations, provide strong evidence of pricing efficiency and market integration.