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Deregulation of the Australian Wheat Export Market: What Happened to Wheat Prices?
- Mugera, Amin W., Curwen, Reece, White, Ben
- Journal of international food & agribusiness marketing 2016 v.28 no.1 pp. 18-34
- exports, markets, prices, wheat, Australia
- This report investigates whether deregulation of the Australian wheat export market induced a structural change in the price data generation process. We analyze the unit root properties of Western Australian wheat price series by testing for the possibility of single and double structural breaks. Daily spot prices for the period of May 20, 2003, to September 14, 2010 are used. We find the wheat price series has a unit root with two structural breaks but neither breaks coincides with the time when the Wheat Export Marketing Act 2008 came into effect on July 1, 2008. The implication of our results is that deregulation was not the main cause of structural breaks in the price series in the sample period.