In 1996, China started to increase its annual soybean imports at a tremendously high speed. It has become one of the most important soybean import markets for the world's largest soybean producers: the United States, Brazil and Argentina. In the meantime, the Dalian Commodity Exchange (DCE), a Chinese soybean futures...
A regime-switching model for market integration study is extended to incorporate dynamic trade flow information and risk perceptions based on an expected utility framework. An application of the extended model to the US-China soybean markets analysis shows that: One, the positive arbitrage rent uncounted-for in the extended model has been...