Financialisation, China, and Stockholding Drive Agricultural Commodity Price Movements Worldwide
The article analyzes how financialization, China, and stockholding affect agricultural commodity prices. Index investor positions influence prices in less liquid markets like soybean oil and livestock. In liquid markets, prices adjust quickly to new information, making it hard to detect the impact of index investment. Changes in Chinese stockholding and self-sufficiency policies have influenced world wheat prices. China's decrease in grain stocks has been controversial, with questions about its impact on global prices.