Use the basis be NBS8334_data_2.xlsx (Excel smooth)
Choose the variables ATP (Argentina Trigo Pan) wheat and USHRW (U.S. Hard Red Winter) wheat.
Log the variables to cem latp and lus as consistent logged prices of ATP and USHRW respectively.
At this limit we normal usurp the basis is I(1) to embody the cointegration experiment. (Note: you must convey quenched part rise experiments as a preparation to cointegration partition).
Plotting the basis ce latp and lus we distinguish that the basis partially may be nonstationary and that they are affecting contemporaneously balance interval. We mistrust at this limit that there may be a long-run homogeneity between the variables, or in other utterance, they may be cointegrated. The basis conspire is as follows: