IDEAS home Printed from https://ideas.repec.org/h/spr/eurchp/978-3-031-55813-9_18.html
   My bibliography  Save this book chapter

The Impact of USDA Wasde Announcements on South African White Maize Futures Prices

In: Eurasian Business and Economics Perspectives

Author

Listed:
  • Ayesha Sayed

    (University of Cape Town)

  • Christo Auret

    (University of the Witwatersrand)

Abstract

The United States Department of Agriculture (USDA) World Agricultural Demand and Supply Estimates (WASDE) releases monthly reports containing valuable information on agricultural projections and expected production. These reports are frequently used by farmers, millers, commodity traders and suppliers, many of whom use futures contracts to mitigate their exposure to commodity price risk. Through an event study analysis, this paper examines the impact of these reports on white maize futures prices listed on the South African Futures Exchange (SAFEX) for the period November 2013 to October 2022. White maize futures contracts remain the most liquidly traded contract on SAFEX and is the only listed white maize contract traded on a futures exchange globally. Furthermore, previous studies have found significant spillover effects from SAFEX-listed white maize onto maize futures listed in the U.S., Brazil, and Argentina. The results confirm significant price reactions, with return variability significantly different from those observed on days preceding and days following the report’s release. Given the prominence of maize in food and fuel production, the results have important implications for market participants not only across futures markets, but also for those involved in the production and sale of industrial products requiring maize.

Suggested Citation

  • Ayesha Sayed & Christo Auret, 2024. "The Impact of USDA Wasde Announcements on South African White Maize Futures Prices," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Manuela Zipperling (ed.), Eurasian Business and Economics Perspectives, pages 319-335, Springer.
    • Handle: RePEc:spr:eurchp:978-3-031-55813-9_18
    DOI: 10.1007/978-3-031-55813-9_18
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurchp:978-3-031-55813-9_18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.