Price Discovery and Integration of the Peanut Markets in the United States
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Currently, the United States is a major supplier in the world peanut market. Using grower level monthly peanut price data from 1982-2018, this study estimates market integration and price discovery patterns among grower level peanut prices from Alabama, Florida, North Carolina, Georgia, Texas and Virginia, using causality structures identified through cutting-edge machine learning algorithms that are applied to the variance-covariance matrix of peanut prices. These causality structures are developed using Directed Acyclic Graphs. Preliminary analysis shows that Georgia is a price leader and others are followers in the current and lag time. Also, price of peanuts in Texas and Georgia are important in determining peanut price of other markets such as North Carolina, Virginia and Alabama. Findings from this study are expected to be useful for peanut producers and marketers as well as government policy makers to design national/state level peanut marketing programs.
Hawkins, Hannah (2019). Price Discovery and Integration of the Peanut Markets in the United States. Undergraduate Research Scholars Program. Available electronically from