Response of the Polish Wheat Prices to the Worlds Crude Oil Prices

• Main Authors: HAMULCZUK, Mariusz - KLIMKOWSKI, Cezary
• Format: Article
• Language: English
• Published: Slovak University of Agriculture 2012-07-01
• Series: Review of Agricultural and Applied Economics
• Subjects: wheat price; crude oil prices; price transmission; VAR; cointegration
• Online Access: http://roaae.org/wp-content/uploads/2014/11/AOEI_vol15_02_Hamulczuk.pdf

Agricultural commodities prices play crucial role both in farmers income determination and in price relationship establishment for the whole economy. Among the factors influencing the wheat prices, crude oil prices are considered as one of the most important. The aim of this paper was to assess the character of linkage between world crude oil prices and Polish wheat prices. Results of the research confirm the existence of such linkage although the nature and the strength of this relationship changes over time. However, the long-run relationships between the crude oil and Polish wheat prices were not proven. Moreover, growing impact of crude oil prices on Polish wheat prices over time was not detected. The results suggest that exchange rates may strongly influence wheat prices. This in turn may weaken response of Polish wheat prices in relation to world crude oil prices.