The Financialization of Coffee, Cocoa and Cotton Value Chains: The Role of Physical Actors

IF 3 2区 社会学 Q1 DEVELOPMENT STUDIES
Bernhard Tröster, Ulrich Gunter
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引用次数: 0

Abstract

The prices of cash crops impact the livelihoods of millions of households in developing countries. While the influence of speculators on global commodity prices determined through derivatives exchanges is extensively discussed, the contribution of hedgers to short‐term changes in futures prices has largely been disregarded in the financialization of commodities discourse over the past two decades. This results in a failure to account for the interconnected activities of increasingly consolidated lead firms within physical global value chains (GVCs) and derivatives markets. This article examines the pricing and hedging strategies of lead firms in the coffee, cocoa and cotton GVCs in relation to their activities on commodity derivatives markets. Based on Open Interest data as an indicator of derivatives markets activity, a measure of buying and selling pressure by trader categories is applied in a Generalized ARCH (GARCH) model. The findings of this article show that hedgers’ activities allow speculators to drive global benchmark prices so that they can benefit through combinations of financial hedging and physical trading strategies. As these practices of lead firms contribute to the transmission of futures prices along GVCs, smallholders and other actors in cash crops in producer countries are exposed to heightened price changes.
咖啡、可可和棉花价值链的金融化:实体行为者的作用
经济作物的价格影响着发展中国家千百万家庭的生计。虽然投机者对通过衍生品交易所决定的全球商品价格的影响已被广泛讨论,但在过去二十年商品金融化的讨论中,套期保值者对期货价格短期变化的贡献在很大程度上被忽视了。这导致无法解释全球价值链(GVC)和衍生品市场中日益整合的主导公司的相互关联活动。本文研究了咖啡、可可和棉花全球价值链中主导企业在大宗商品衍生品市场上的定价和对冲策略。以作为衍生品市场活动指标的未平仓合约数据为基础,在广义 ARCH(GARCH)模型中应用了按交易商类别划分的买卖压力测量方法。本文的研究结果表明,套期保值者的活动允许投机者推动全球基准价格,从而使他们可以通过金融套期保值和实物交易策略的组合获益。由于龙头企业的这些做法推动了期货价格在全球价值链上的传播,生产国的小农和其他经济作物生产者面临着更大的价格变化风险。
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来源期刊
Development and Change
Development and Change DEVELOPMENT STUDIES-
CiteScore
6.80
自引率
3.30%
发文量
46
期刊介绍: Development and Change is essential reading for anyone interested in development studies and social change. It publishes articles from a wide range of authors, both well-established specialists and young scholars, and is an important resource for: - social science faculties and research institutions - international development agencies and NGOs - graduate teachers and researchers - all those with a serious interest in the dynamics of development, from reflective activists to analytical practitioners
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