International Grain Reserves : And Other Instruments to Address Volatility in Grain Markets

Wright, Brian

dc.creator	Wright, Brian
dc.date	2012-03-19T19:12:05Z
dc.date	2012-03-19T19:12:05Z
dc.date	2009-08-01
dc.date.accessioned	2023-02-18T19:36:57Z
dc.date.available	2023-02-18T19:36:57Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090825154655
dc.identifier	http://hdl.handle.net/10986/4220
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/249720
dc.description	In the long view, recent grain price volatility is not anomalous. Wheat, rice, and maize are highly substitutable in the global market for calories, and when aggregate stocks decline to minimal feasible levels, prices become highly sensitive to small shocks, consistent with storage models. In this decade, stocks have declined due to high income growth and biofuels mandates. Recently, shocks including the Australian drought and biofuels demand boosts due to the oil price spike were exacerbated by a sequence of trade restrictions by key exporters beginning in the thin global rice market in the fall of 2007, which turned market anxiety into panic. To protect vulnerable consumers, countries intervened in storage markets and, if they were exporters, to limit trade access. Recognizing these realities, vulnerable countries are building strategic reserves. The associated expense and negative incentive effects can be controlled if reserves have quantitative targets related to the consumption needs of the most vulnerable, with distribution to the latter only in severe emergencies. More-ambitious plans manipulate world prices via buffer stocks or naked short speculation to keep prices consistent with fundamentals. Past interventions of either kind have been expensive, ineffective, and generally short-lived. Further, there is no significant evidence that prices do not reflect fundamentals, including export market access.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5028
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTING
dc.subject	ACCUMULATION OF DEBT
dc.subject	AGGREGATE SUPPLY
dc.subject	AGRICULTURAL COMMODITIES
dc.subject	AGRICULTURAL COMMODITY
dc.subject	AGRICULTURE
dc.subject	ARBITRAGE
dc.subject	AVERAGE PRICE
dc.subject	BEHAVIOR OF PRICES
dc.subject	BID
dc.subject	CALL OPTION
dc.subject	CAPITALIST ECONOMIES
dc.subject	CARTEL
dc.subject	CASH INFLOW
dc.subject	COMMODITIES
dc.subject	COMMODITY
dc.subject	COMMODITY PRICE
dc.subject	COMMODITY PRICES
dc.subject	COMPETITIVE MARKET
dc.subject	CONSUMERS
dc.subject	CONSUMPTION INCREASES
dc.subject	CONSUMPTION LEVELS
dc.subject	CORN PRICE
dc.subject	COST INCREASES
dc.subject	COST OF CAPITAL
dc.subject	DEBT
dc.subject	DEMAND CURVE
dc.subject	DEMAND GROWTH
dc.subject	DEPOSITS
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DOMESTIC MARKET
dc.subject	DOMESTIC PRICE
dc.subject	DOMESTIC PRICES
dc.subject	DUMPING
dc.subject	ECONOMIC ORDER
dc.subject	ECONOMICS RESEARCH
dc.subject	EMERGING ECONOMIES
dc.subject	ENERGY PRICE
dc.subject	ENERGY PRICES
dc.subject	EXCHANGE RATE
dc.subject	EXCHANGE RATE MOVEMENTS
dc.subject	EXISTING GOVERNMENT
dc.subject	EXPECTED RETURNS
dc.subject	EXPECTED VALUE
dc.subject	EXPENDITURE
dc.subject	EXPENDITURES
dc.subject	EXPORT MARKET
dc.subject	EXPORTER
dc.subject	EXPORTERS
dc.subject	EXPORTS
dc.subject	FINANCIAL FLOWS
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL SECTOR
dc.subject	FIXED INTEREST
dc.subject	FIXED INTEREST RATE
dc.subject	FLOOR PRICE
dc.subject	FLOOR PRICES
dc.subject	FOOD PRICE
dc.subject	FOOD PRICES
dc.subject	FORECASTS
dc.subject	FREE MARKET
dc.subject	FUND INVESTMENT
dc.subject	FUTURES
dc.subject	FUTURES CONTRACTS
dc.subject	FUTURES MARKET
dc.subject	FUTURES MARKETS
dc.subject	GLOBAL CAPITAL
dc.subject	GLOBAL MARKET
dc.subject	GLOBAL MARKETS
dc.subject	GLOBALIZATION
dc.subject	GOVERNMENT EXPENDITURE
dc.subject	GOVERNMENT FUNDS
dc.subject	GOVERNMENT REVENUE
dc.subject	HEDGE FUNDS
dc.subject	HEDGES
dc.subject	HOLDING
dc.subject	HOLDINGS
dc.subject	HOUSING MARKET
dc.subject	HUMAN CAPITAL
dc.subject	INCENTIVE EFFECTS
dc.subject	INCOME
dc.subject	INCOME GROWTH
dc.subject	INCOMES
dc.subject	INFLATION
dc.subject	INSURANCE
dc.subject	INTEREST COSTS
dc.subject	INTEREST RATE
dc.subject	INTEREST RATE POLICIES
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL COOPERATION
dc.subject	INTERNATIONAL DEBATES
dc.subject	INTERNATIONAL ECONOMY
dc.subject	INTERNATIONAL FINANCE
dc.subject	INTERNATIONAL MARKET
dc.subject	INTERNATIONAL MARKETS
dc.subject	INTERNATIONAL RESERVES
dc.subject	INTERNATIONAL TRADE
dc.subject	INVESTMENT BEHAVIOR
dc.subject	INVESTMENT VEHICLES
dc.subject	LIQUIDITY
dc.subject	MARGINAL COST
dc.subject	MARGINAL VALUE
dc.subject	MARKET ACCESS
dc.subject	MARKET BEHAVIOR
dc.subject	MARKET CONDITIONS
dc.subject	MARKET DEMAND
dc.subject	MARKET ENVIRONMENT
dc.subject	MARKET FAILURE
dc.subject	MARKET INSTABILITY
dc.subject	MARKET PARTICIPANTS
dc.subject	MARKET PRICE
dc.subject	MARKET PRICES
dc.subject	MARKET REGULATION
dc.subject	MARKET STABILIZATION
dc.subject	MARKET STOCKS
dc.subject	MARKET VOLATILITY
dc.subject	MARKETING
dc.subject	MARKETING BOARDS
dc.subject	MATURITIES
dc.subject	MONOPOLIES
dc.subject	MONOPOLY
dc.subject	OIL PRICE
dc.subject	OIL PRICES
dc.subject	OPTIMIZATION
dc.subject	OPTIONS MARKETS
dc.subject	OUTPUT
dc.subject	PETROLEUM PRICES
dc.subject	POLICY RESPONSES
dc.subject	PORTFOLIO
dc.subject	PORTFOLIO ALLOCATION
dc.subject	PRICE BAND
dc.subject	PRICE BEHAVIOR
dc.subject	PRICE CEILING
dc.subject	PRICE CHANGES
dc.subject	PRICE EFFECT
dc.subject	PRICE FLOOR
dc.subject	PRICE FLUCTUATIONS
dc.subject	PRICE INCREASE
dc.subject	PRICE INCREASES
dc.subject	PRICE INDEX
dc.subject	PRICE INDEXES
dc.subject	PRICE MOVEMENTS
dc.subject	PRICE RISK
dc.subject	PRICE SERIES
dc.subject	PRICE STABILIZATION
dc.subject	PRICE SUPPORT
dc.subject	PRICE TRENDS
dc.subject	PRICE VOLATILITY
dc.subject	PRIVATE MARKET
dc.subject	PRODUCTION COSTS
dc.subject	PRODUCTION EFFICIENCY
dc.subject	PUBLIC BUDGETS
dc.subject	PUBLIC SALES
dc.subject	PUBLIC STOCK
dc.subject	PUBLIC STOCKS
dc.subject	RANDOM WALK
dc.subject	RESERVE
dc.subject	RETURNS
dc.subject	RISKNEUTRAL
dc.subject	SALE
dc.subject	SALES
dc.subject	SMOOTHING CONSUMPTION
dc.subject	SPOT MARKET
dc.subject	SPOT PRICES
dc.subject	STOCK ADJUSTMENTS
dc.subject	STOCK DATA
dc.subject	STOCKS
dc.subject	STORAGE CAPACITY
dc.subject	SUBSTITUTE
dc.subject	SUBSTITUTION
dc.subject	SUPPLIER
dc.subject	SUPPLIERS
dc.subject	SUPPLY SHOCK
dc.subject	SUPPLY SHOCKS
dc.subject	SURPLUSES
dc.subject	TAX
dc.subject	TAX POLICIES
dc.subject	TRADE BARRIERS
dc.subject	TRADE POLICY
dc.subject	TRADING
dc.subject	TRADING VOLUME
dc.subject	TRANSACTION
dc.subject	TRANSACTION COSTS
dc.subject	TRANSPARENCY
dc.subject	VOLATILITY
dc.subject	WEALTH
dc.subject	WORLD MARKETS
dc.subject	WORLD TRADE
dc.subject	WORLD TRADE ORGANIZATION
dc.subject	WTO
dc.title	International Grain Reserves : And Other Instruments to Address Volatility in Grain Markets
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region