Abstract: No AccessDec 2014Long-Term Drivers of Food PricesAuthors/Editors: John Baffes, Allen DennisJohn Baffes, Allen Dennishttps://doi.org/10.1596/978-1-4648-0305-5_ch1AboutView ChaptersFull TextPDF (1.3 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract: Uses a reduced-form price-determination model to assess the relative contributions of various factors considered to be long-term drivers of food prices. The model addresses 1960-2012 annual data of five food commodities: maize, wheat, rice, soybeans, and palm oil. The factors considered by the study include crude oil prices on the supply side, stock-to-use ratios, three macroeconomic indicators (exchange rate movements, interest rates, and inflation), and income on the demand side. Based on the model, it is clear that food commodity prices respond strongly to energy prices, stock-to-use ratios, and exchange rate movements. 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