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Sugar Tech

, Volume 21, Issue 6, pp 853–861 | Cite as

The Interrelationship Between Sugar Prices at the Main World Sugar Commodities Markets

  • Lenka Rumánková
  • Luboš Smutka
  • Mansoor MaitahEmail author
  • Irena Benešová
Scientific Correspondence
  • 45 Downloads

Abstract

This paper focuses on the topic of the interrelationship between global sugar prices. This relationship is examined using multivariate time series analysis. The analysis is based on the data set containing daily prices of sugar on the core world sugar markets in the period August 2012–August 2017. The multivariate time series analysis was employed to detect and examine the short-run as well as the long-run interrelationship between the world sugar markets. For this purpose, the vector error correction model was employed as the most suitable tool for further examination. The analysis has shown the non-stationary characteristics of individual sugar prices. Moreover, the common trend of the analyzed time series has been detected by utilizing co-integration analysis. A close relationship has been revealed in a limited number of markets. The price of sugar on individual markets is lagged one period and common trend expressed mainly by world sugar price.

Keywords

Sugar Price Stock market Time series Relationship VECM 

Notes

Acknowledgements

This paper is supported by a grant project of the Internal Grant Agency of the Faculty of Economics and Management Czech University of Life Sciences, Prague. The project title is “Economic specifics of the post-Soviet Countries (20181018).”

Author’s Contribution

LS and IB conceived and designed the experiments; LR performed the experiment and analyzed the experiment; MM wrote the paper.

Compliance with Ethical Standards

Conflict of interest

The authors declare no conflict of interest.

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Copyright information

© Society for Sugar Research & Promotion 2019

Authors and Affiliations

  1. 1.Faculty of Economics and ManagementCzech University of Life Sciences PraguePragueCzech Republic

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