Pricing Behavior of USA Exporter in Wheat International Market

Abstract

The number of wheat producing countries is changing over time. It is expected the change in wheat supply will lead world wheat market become more competitive and reduce market power of major exporter country. This paper tries to identify and examined the degree of market power on wheat international market for USA by using the Pricing to Market (PTM) method. USA is the biggest producer and exporter in wheat market. The PTM method found that USA impose noncompetitive strategy by applying price discrimination and apply market power to their importer country.