Economist interested in workings of modern markets

Farm and Ranch October 4, 2011 The person selected to fill the Small Grain Endowed Chair in Economics at Washington State University is interested in studying markets and market behavior. Dr. Randall Fortenbery says that’s what a lot of his work was in his previous position in Wisconsin.

Fortenbery: “We have had a lot of concern in the last four or five years about volatility in commodity markets in general. What is driving that volatility? How do producers react to it. Some of the old marketing strategies either aren‘t as effective or they are more expensive, or they are less useful than they once were. Looking partly at the futures market itself where we get some of our pricing expectations for later delivery, are there issues with they way that is operating? If there are what is driving some of the concerns. Is it excessive speculation or not? Are there other things driving the volatility.”

And in recent years Fortenbery says there’s been the influence of the global environment.

Fortenbery: “Things like currency values. How is the dollar behaving? What is driving the dollar‘s value. How does it affect our ability to trade with our traditional partners.”

Fortenbery recently testified before the Commodity Futures Trading Commission.

Fortenbery: “Basically the issue that the Commodity Futures Trading Commission was struggling with was, how should they be reacting to the pressure they are getting to step up the regulation in these markets.”

Fortenbery is a native of Montana.

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net.

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