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Changes in the behavior of HFCS prices: The effect of US. Corn prices

Abstract:

This paper analyzes the relationship between HFCS and sugar prices in light of high corn prices. While the price of corn was the most important determinant of variations in HFCS prices between 2000 and 2008, sugar prices continued to have a statistically significant effect on HFCS prices. However, the latter effect decreased in the months when corn prices were the highest. The significance of sugar prices in explaining variations in HFCS prices and the short period in which HFCS prices were above sugar prices indicate that, in the long run, sugar and HFCS continue to be substitute products in the uses where HFCS dominates.