Forecasting urea prices

C-Tier
Journal: Applied Economics
Year: 2017
Volume: 49
Issue: 49
Pages: 4970-4981

Authors (2)

Seon-Woong Kim (not in RePEc) B. Wade Brorsen (Oklahoma State University)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Managing urea price risk is a concern of firms in the urea supply chain due to high price volatility and relatively slow transportation. This study develops urea price forecasting models as a way to reduce price risk. The forecasting models are evaluated based on multiple accuracy measures and compared to Fertilizer Week, a commercial forecast. An autoregressive model with exogenous variables (ARX) using a window size of 48 months outperforms the other models. No statistical difference exists between our best model and Fertilizer Week. Encompassing tests show that a combination model using the two models outperforms using Fertilizer Week forecasts alone. A combined model using 66.8% of $$ Fertilzer\, Week $$FertilzerWeek and 33.2% of the ARX brings about the minimum forecast error.

Technical Details

RePEc Handle
repec:taf:applec:v:49:y:2017:i:49:p:4970-4981
Journal Field
General
Author Count
2
Added to Database
2026-01-24