Cointegration study reveals potential for more accurate wheat price forecasts.
The article examines wheat prices in different U.S. markets to see how they are connected. By comparing different forecasting methods, the researchers found that using a specific type of model can lead to more accurate long-term predictions. Specifically, using a levels vector autoregression model gives lower error variance over time, even though it may have a higher error bias initially. This suggests that understanding the relationships between wheat prices in different markets can help make better predictions about future prices.