Showing papers on "Commodity published in 2017"

Bitcoin for energy commodities before and after the December 2013 crash: diversifier, hedge or safe haven?

Abstract: We study the relationship between Bitcoin and commodities by assessing the ability of Bitcoin to act as a diversifier, hedge, or safe haven against daily movements in commodities in general, and energy commodities in particular. We focus on energy commodities because energy, in the form of electricity, is an essential input in the Bitcoin production. For the entire period, results show that Bitcoin is a strong hedge and a safe-haven against movements in both commodity indices. We further examine whether that ability is also present for non-energy commodities and our analysis show insignificant results when energy commodities are excluded from the general commodity index. We also account for the December 2013 Bitcoin price crash and our results reveal that Bitcoin hedge and safe-haven properties against commodities and energy commodities are only present in the pre-crash period, whereas in the post-crash period Bitcoin is no more than a diversifier. In addition to uncovering the time-varying role o...

Is voluntary certification of tropical agricultural commodities achieving sustainability goals for small-scale producers? A review of the evidence

Abstract: Over the last several decades, voluntary certification programs have become a key approach to promote sustainable supply chains for agricultural commodities. These programs provide premiums and other benefits to producers for adhering to environmental and labor practices established by the certifying entities. Following the principles of Cochrane Reviews used in health sciences, we assess evidence to evaluate whether voluntary certification of tropical agricultural commodities (bananas, cocoa, coffee, oil palm, and tea) has achieved environmental benefits and improved economic and social outcomes for small-scale producers at the level of the farm household. We reviewed over 2600 papers in the peer-review literature and identified 24 cases of unique combinations of study area, certification program, and commodity in 16 papers that rigorously analyzed differences between treatment (certified households) and control groups (uncertified households) for a wide range of response variables. Based on analysis of 347 response variables reported in these papers, we conclude that certification is associated on average with positive outcomes for 34% of response variables, no significant difference for 58% of variables, and negative outcomes for 8% of variables. No significant differences were observed for different categories of responses (environmental, economic and social) or for different commodities (banana, coffee and tea), except negative outcomes were significantly less for environmental than other outcome categories ( p = 0.01). Most cases (20 out of 24) investigated coffee certification and response variables were inconsistent across cases, indicating the paucity of studies to conduct a conclusive meta-analysis. The somewhat positive results indicate that voluntary certification programs can sometimes play a role in meeting sustainable development goals and do not support the view that such programs are merely greenwashing. However, results also indicate that certification is not a panacea to improve social outcomes or overall incomes of smallholder farmers. Rigorous analysis, standardized criteria, and independent evaluation are needed to assess effectiveness of certification programs in the future.

An Overview of Global Wheat Market Fundamentals in an Era of Climate Concerns

Abstract: Wheat is a key global commodity in terms of acreage and tradeable value and as a staple in household diets. Many factors affect wheat prices including climate, yields, oil prices, lagged prices, and imports. In addition to gradually and consistently increasing global wheat demand, these market drivers are posited to impact world prices and, ultimately, food security. To investigate how these factors differentially influence wheat markets, an extensive survey of literature regarding wheat market fundamentals was conducted, as well as a trend analysis using a uniquely compiled data set specific to significant wheat-producing areas. Previous studies show that imports, climate, oil prices, and past prices, among other factors, have a significant relationship with changes in the world wheat price. This study compiles and compares these same key variables from five major wheat export countries/regions for the time frame from 1980 to 2013.

Bridging the practitioner-researcher divide: Indicators to track environmental, economic, and sociocultural sustainability of agricultural commodity production

Abstract: Agricultural systems, with their links to human wellbeing, have been at the heart of sustainability debates for decades. But there is only limited agreement among scientists and stakeholders about the indicators needed to measure the sustainability of agricultural commodity production. We analyze the metrics and indicators of sustainability used in contemporary research on commodity agriculture to demonstrate that new sustainability indicators continue to be developed rapidly by researchers interested in the three principal pillars of sustainability (environmental, economic, and sociocultural). Data from interviews with main agencies and organizations investing in sustainable commodity agriculture reveals that the most commonly used indicators in the academic literature do not overlap with the central aspects of agricultural commodity production that practitioners seek to monitor. Increased dialogue between researchers and practitioners is necessary for better design and use of metrics and indicators that are cost-effective and can be used to compare sustainability outcomes across countries and commodities. We argue that finding common ground among researchers and practitioners requires coordinating ongoing data collection efforts, a greater focus on linking data collection to relevant indicators for sustainable agricultural production, and more attention to the analysis of combined datasets, rather than on the collection of new data on new indicators. By outlining twelve key aspects of agricultural commodity production that the interviewed practitioners from major agencies and organizations deem important to track, our analysis provides a strong framework that can help bridge research-practitioner divisions related to agricultural commodity production and the use of indicators to monitor and assess its sustainability. Our findings are relevant to the search for a parsimonious set of sustainability indicators at a critical time within the context of a new emerging global sustainability agenda.

Commodity recommendation method and device

Abstract: The invention relates to a commodity recommendation method and device, and belongs to the technical field of networks. The method comprises the following steps: determining the quantity of a plurality of first users based on a first commodity and a plurality of second commodities; determining weighting factors between the first commodity and the second commodities respectively based on the quantity of the first users and a specified control parameter; for each second commodity in the plurality of second commodities, multiplying the weighing factor between the second commodity and the first commodity by an original similarity degree between the second commodity and the first commodity respectively to obtain first cooperative similarity degrees between the first commodity and the second commodities; and recommending a second commodity having a largest first cooperative similarity degree with the first commodity in the plurality of second commodities. Through adoption of the commodity recommendation method and device, the second commodity in which the users are interested possibly is recommended to the users who already purchase the first commodity according to history purchasing behaviors of the plurality of first users on the first commodity and the plurality of second commodities, so that the defect that the second commodity needs to be found from massive data is overcome, and the operation efficiency is increased.

Economic aspects of virtual water trade

Abstract: Although water is rarely traded over long distances by itself, the total weight of the water consumed to produce traded commodities exceeds the weight of any other commodity traded in the world. This concept is known as virtual water trade. Although space-/time-/commodity-based quantification has been conducted extensively, the underlying causes of this peculiar feature have thus far received little exploration. Here, we use estimates of water consumption from a global hydrological model and statistical data related to food trade to elucidate three facts that explain the fundamental nature of virtual water trade with respect to alleviating water scarcity. First, we quantitatively illustrate the unique position of water among commodities based on its unit price and quantity of sales. Water has an extremely low unit price, and a tremendous volume of water is consumed per person each day. Second, we show that rich but water-scarce countries tend to reduce local water consumption by importing virtual water. Third, we demonstrate that nations characterized by net virtual water exports have higher water resources and income per capita and that no countries fall below a certain threshold with respect to both GDP and water resources. These points suggest that the virtual water trade is explained by economic characteristics of water and that sustainable development depends on promoting the co-development of poverty alleviation and water resource development.

Commodity information recommending method and commodity information recommending system based on user historical behaviors

Abstract: The invention discloses a commodity information recommending method based on user historical behaviors. The method comprises the following steps of S11, acquiring historical behavior data of a user in an E-commerce website; S12, establishing a user commodity probability prediction characteristic vector according to the historical behavior data; S13, training a model according to the user commodity probability prediction characteristic vector, and obtaining a user recommendation commodity prediction model; S14, inputting to-be-predicated user data into the user recommendation commodity prediction model, and calculating a predicated purchasing probability of a behavior commodity; and S15, according to the predicated purchasing probability, calculating the predicated purchasing probabilities of correlated commodities, and combining the behavior commodities and the correlated commodities for obtaining a commodity recommending list. According to the commodity information recommending method and the commodity information recommending system, behavior data of the user are accurately analyzed; an individualized commodity recommending list is supplied to a user; and furthermore higher accuracy in commodity recommending is realized.

Greater state capacity, lesser stateness: lessons from the peruvian commodity boom

Abstract: This article analyzes the evolution of state capacity in Peru during the recent commodity boom. Peru’s economic growth happened in a context in which inclusive democratic institutions were at play ...

Taxes in an e-commerce generation

Abstract: Rapid growth in e-commerce has altered the ability of jurisdictions to enforce commodity taxes on a destination basis. This results in different effective tax rates depending on the way in which goods and services are purchased and the characteristics of both the products and the sellers. We discuss the arguments for the destination principle as the appropriate place-of-taxation rule for consumption taxation of cross-border trade. We analyze various recent reforms to the value-added tax in the European Union in response to e-commerce. We then examine various policy options in the USA—maintaining the status quo, changing nexus rules, states adopting information reporting, and national reforms that require firms to remit taxes regardless of physical presence—and relate them to the recent European reforms. We conclude based on our analysis and the recent European Union experience that reforms at the national level appear to be the important next step to enforcing commodity taxes at destination in the USA.

Resisting the Neoliberalization of Higher Education: A Challenge to Commonsensical Understandings of Commodities and Consumption:

Abstract: In this article, we explore commodities and consumption, two concepts that are central to critiques of the neoliberal university. By engaging with these concepts, we explore the limits of neolibera...

The Economic Impact of Index Investing

Abstract: We quantify the economic impact of index investing by examining the link between commodity indices and firms which use commodities as an intermediate good. In 2004, there was a dramatic increase in commodity index investing, an event referred to as the financialization of commodity markets. We show that firms which use commodities make worse production decisions and earn lower profits after financialization. Consistent with theoretical models in which market participants learn from market prices, our results suggest that index investing in financial markets distorts the price signal thereby generating negative externalities for the economy.

Bubbles, Froth and Facts: Another Look at the Masters Hypothesis in Commodity Futures Markets

Abstract: The Masters Hypothesis suggests that long-only index funds were the main cause of a massive increase in commodity prices in 2007–2008 and 2011–2012. Central to the Masters Hypothesis are three basic tenets: (i) long-only commodity index funds were directly responsible for driving futures prices higher; (ii) the deviations from fundamental value were economically very large; (iii) the impact was pervasive across commodity futures markets. There has been a great deal of empirical research on the Masters Hypothesis and commodity market bubbles. However, surprisingly few studies have found evidence that directly support the main tenets of the Masters Hypothesis. Some have attributed the lack of supporting evidence to the low-power of time-series tests, market efficiency issues and a lack of conditioning variables within models. In this paper, we address each of these issues using updated data and new empirical approaches. Still, price behaviour consistent with the Masters Hypothesis is surprisingly difficult to find in the data. This is an important finding given the on-going policy debate and regulations proposed or being implemented to limit speculative positions in these markets.

Trading in the secretive commodity

Abstract: Over the past century and a half, a handful of transnational corporations have built fortunes trading commodity crops such as corn, soy and wheat. Graded and standardized, these commodities are con...

Self-service selling method and system

Abstract: Disclosed in the present invention are a self-service selling method and system The method comprises: when a cloud service platform receives a purchase instruction sent by a user by means of a client of a mobile terminal, the cloud service platform authenticates the user; when the user is successfully authenticated, a selling device opens a selling window; when it is detected the selling window is closed, the selling device determines a current stock of the commodities by recognizing an RF label on the commodity, and compares the current stock of the commodities with the stock of the commodities before the sale window is opened, so as to determines a commodity purchased by a user this time; and the selling device requests an electronic shopping list of commodities purchased this time, from the cloud service platform, and prompts the user to complete the payment according to the electronic shopping list In this way, when the selling window is opened, the user can pick up the commodity and can clearly and completely see commodity information printed on a package, the user chooses a wanted commodity according to the commodity information and completes payment after the selection, thereby improving shopping convenience and improving shopping experience

Land Market and Land Grabbing in Brazil during the Commodity Boom of the 2000s

Abstract: This article analyses the determining factors affecting the land market in Brazil in an international context where the availability of natural resources, essential to satisfy the population worldwide, is again heading the agenda. This scenario provoked a rapid expansion of agribusiness and enhanced international participation based on the relative abundance of natural resources. The first part of this article presents the spatial dynamics surrounding the production of commodities and gives evidence of the sharp increase in land price in Brazil. The second part attempts to understand the factors that affect price dynamics and subsequent effects over capital allocation in the sector, addressing the impact of the recent boom of commodities and rising interest by foreign actors in Brazilian land. The conclusion elaborates on the possible land pricing developments and political unfolding.

Impact of India’s National Food Security Act on domestic and international rice markets

Abstract: Policy making in food security is at a crossroads in India, particularly for the rice crop Whereas India has emerged has a leading rice exporter over the last two years, the government has also introduced a large food subsidy program called the National Food Security Act The program requires that 336 million metric tons of rice per year be distributed to the marginalized rural and urban populations of the country In this study, we analyze the long-term impact of India’s Food Security Act on its domestic rice market and the international market for rice We specify and apply a structural demand-and-supply model to India’s rice market and link it with the world rice market, as part of a broad partial equilibrium modeling system of international agriculture commodity markets We specifically focus on three different scenarios—subsidy as a price effect, subsidy as an inelastic income effect, and subsidy as an elastic income effect—under the broader framework of the National Food Security Act We find that at the end of the projection period (the 2024/2025 crop year), as a result of the rice subsidy program, the consumption of rice increases significantly by 6,831 thousand metric ton (MT) in the case of the price effect while the inelastic income effect has little on production, consumption which increase by 265 thousand MT and 269 thousand MT, respectively and no impact on rice export of India

Welcome to the club! An exploratory study of service accessibility in commodity housing estates in Guangzhou, China

Abstract: In post-reform China, gated commodity housing estates play a crucial role in the provision of urban services. Such collective service provision is criticized in the urban studies literature, because ‘club goods’ are thought to exclude people that do not live in gated communities. This paper reflects on the global relevance of that argument with an exploratory study in Guangzhou, China. We argue that access to collective services is structured in local social practices, involving diverse actors and specific rules and resources. Discussions on the exclusionary effects of service provision through gated communities should therefore focus on the characteristics of these practices of access in specific cities. Employing this perspective, the paper shows that in Guangzhou at least two mechanisms partly ease the exclusion of non-residents from club goods. On the one hand, municipal government maintains a considerable role in service management, mediating exclusion from services for people who do not live...

Impact assessment of commodity standards: towards inclusive value chains

Abstract: Voluntary commodity standards are widely used to enhance the performance of tropical agro-food chains and to support the welfare and sustainability of smallholder farmers. Different methods and approaches are used to assess the effectiveness and impact of these certification schemes at farm-household, village, cooperative, and regional level. We provide an overview of the results from robust impact studies on coffee, tea, banana, cocoa, and cotton certification programmes. Overall outcomes show rather modest net revenue effects for farmers, small direct income effect for wage workers, and contested sustainability effects. Most impact studies focus on primary sourcing, but devote less attention to changes in trust and governance throughout the value chain. Moreover, implications for gender issues and supply chain trust are not always fully addressed. In order to better understand these somewhat disappointing effects, we discuss different fallacies and drawbacks that affect impact studies concerning commodity certification programmes. Main attention is given to perverse incentives for intensification and specialization that arise from certification. Moreover, spillovers to other (non-certified) farmers and spatial externalities at landscape level may reduce net effects. Important secondary effects related to behavioural change (risk, trust) and local innovation dynamics are usually overlooked. Current practices in value chain development programmes should focus increasingly on dynamic effects of upgrading and improved market integration. New interactive impact assessment approaches (gaming, multi-agency simulation) that address integrated value chain relationships offer promising perspectives for real-time and systematic analysis of alternatives for smallholder value chain inclusion beyond certification.

The role of China in Africa’s industrialization : the challenge of building global value chains

Abstract: The economies of Africa require urgent structural transformation and the great challenge is how industrial development can aid this transformation process. China’s ability to sustain high productivity growth was underpinned by resource allocation from low-to-high productive sectors and this was the essence of its own modernization processes. Most African countries remain highly reliant on commodity exports in a depressed global environment, exacerbated by declining demand from China as the continent’s major trading partner. This article examines the dilemmas of Africa’s reliance on commodity exports but, equally importantly, it seeks to investigate how China, based on its own experience, could contribute to assisting African countries to move up value chains via the imperative of a concerted industrialization endeavour and the commitments China has made in this regard. This article suggests an incremental approach that emphasizes the importance of institution building as the optimal route for prom...