The influence of export premium, exchange rate and foreign prices on the soybeans price in Brazil

Authors

  • Gilmar Ribeiro de Souza
  • Sandra Cristina de Oliveira
  • Giuliana Aparecida Santini

Keywords:

Soybeans, Commercialization, Price formation, Foreign prices, Multiple linear regression

Abstract

This study aimed to confirm the hypothesis that prices received by Brazilian soybean producers are a function of three key variables: observed prices in the international market, which has as its main reference futures contracts traded on the Chicago Board of Trade (CBOT), the real/dollar exchange rate and soybeans export premium (Paranagua basis), using the statistical model of multiple linear regression. Secondarily, it sought to confirm the characterization of Brazil as a price taker in the soybeans international market. It verified that the model performed shown quite appropriate as it allowed us to analyze satisfactorily the relationship between the variables and conclude that the price received by Brazilian soybean producers are really a function of these variables, with foreign markets prices, based on the CBOT, and the exchange rate, the variables with the greatest effect on domestic prices.

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How to Cite

Souza, G. R. de, Oliveira, S. C. de, & Santini, G. A. (2013). The influence of export premium, exchange rate and foreign prices on the soybeans price in Brazil. Latin American Journal of Business Management, 4(1). Retrieved from https://www.lajbm.com.br/journal/article/view/122

Issue

Vol. 4 No. 1 (2013)

Section

Articles

License

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