Transaction costs in corn prices: the case of the Midwest

This study was to analyze integration between corn prices in major producing Midwest Brazil, among the results, shows that the plazas are integrated in the presence of threshold effects of prices on the squares, or simply the effect of "Threshold cointegration". To this end, the analysis considered the series of studied maize prices Goias, Mato Grosso and Mato Grosso do Sul in the period from April 2004 to July 2013 High above scheme shocks -. 0.04% are transmitted between markets for example, only a demand shock in Goias exceeding 4% promotes price adjustment in Mato Grosso, vice versa. In the second square of marketing in the high regime, shocks above - 0.08% are transmitted between markets, for example, only a demand shock in Goias exceeding 8% promotes price adjustment in Mato Grosso do Sul, vice versa.