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Agricultural industry

Price Fluctuations in International Commodities Affect Agricultural Products in China

Strategic Insights

— 1 min read

A recent study conducted by researchers at Hebei University has found that price fluctuations in international commodities have a significant impact on the price of agricultural products in China. The research, supported by The Humanities And Social Sciences Youth Fund Project Under The Ministry of Education of The PRC and The Social Science Cultivation Project of Hebei University, investigated the transmission of price fluctuations from international commodities to Chinese agricultural products. The study utilized the Commodity Research Bureau index (CRB) and the price indexes of 21 Chinese agriculture-related products as empirical data.

Key Takeaways:

  • The transmission path of price fluctuations from CRB to Chinese agricultural products is complex and not limited to the agricultural chain from upstream to downstream.
  • The indirect effects of CRB on agricultural products cannot be ignored, and the transmission relationships are tighter than nonlinear relationships.
  • Agricultural products play different roles in the cascaded transmission process, and the roles of individual products vary.
  • The research highlights the importance of categorizing agricultural products for decentralized management to mitigate the impacts of international commodity market volatility.
  • The study provides new insights into the price transmission mechanism from international commodities to Chinese agricultural products.

Statistics:

  • 21 Chinese agriculture-related products were used as empirical data in the study.
  • The Commodity Research Bureau index (CRB) was used to measure price fluctuations in international commodities.
  • The transmission relationships between CRB and agricultural products were found to be tighter than nonlinear relationships.
  • The study identified three main roles of agricultural products in the cascaded transmission process.

Sources:

  • Revisiting the price transmission from international commodity to Chinese agricultural products based on an industry chain perspective. Humanities & Social Sciences Communications, 2025,12(1):1-13.
  • Qingru Sun, Hebei University, China.

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