Abstract

Increasing interconnection between energy and agricultural markets has led to a huge and still growing literature. This chapter focuses on oil and agricultural commodity markets linkages. It first discusses the driver of agricultural prices and then describes a framework for oil and agricultural price linkage. Finally, it pays a special attention to the research questions and modeling strategies by reviewing the studies which provide new perspectives and fresh information related to the relations between oil and agricultural commodity prices. The literature can be extended by indicating fresh evidence to better understand the dynamics between energy and agricultural markets.