JOURNAL ARTICLE

Analysis of Negative Commodity Prices.

  • Published In: Journal of Investing, 2025, v. 34, n. 4. P. 106 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Ma, Lingjie 3 of 3

Abstract

This article analyzes negative price events, with a focus on commodity futures contracts. The author finds that the negative price of onions in 1956 and West Texas Intermediate in 2020 was associated with abnormal price impacts. The negative prices of commodity contracts cause market distortions and unfairness among market participants, with speculators gaining the most benefit, and negative futures prices for commodities should be prohibited. The author proposes an analytical framework, performs a simulation study, and recommends policy changes to improve market efficiency and fairness. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Journal of Investing. 2025/06, Vol. 34, Issue 4, p106
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • ISSN:1068-0896
  • DOI:10.3905/joi.2025.1.355
  • Accession Number:185964619
  • Copyright Statement:Copyright of Journal of Investing is the property of With Intelligence Limited and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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