Exploring the Dynamics of CPO Spot and Futures Prices in Relation to Global Crude Oil Price: Evidence from India using ARDL Model Approach and Granger Causality Tests
This study examines the connection between Crude Palm Oil (CPO) spot and futures prices, and global crude oil prices using ARDL model and Granger causality tests to analyze data collected between January 2011 and April 2022, including CPO spot and futures prices, MCX, and WTI Crude oil futures. The...
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Qubahan
2024-01-01
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| Series: | Qubahan Academic Journal |
| Online Access: | https://journal.qubahan.com/index.php/qaj/article/view/238 |
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| author | Supriya R Rajesh Mamilla |
| author_facet | Supriya R Rajesh Mamilla |
| author_sort | Supriya R |
| collection | DOAJ |
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This study examines the connection between Crude Palm Oil (CPO) spot and futures prices, and global crude oil prices using ARDL model and Granger causality tests to analyze data collected between January 2011 and April 2022, including CPO spot and futures prices, MCX, and WTI Crude oil futures. The results from the coefficient estimations show that both CPO future price percentage changes and crude oil price have a statistically significant impact on the CPO spot price. The study also reveals a long-term relationship between the dependent and independent variables in the level’s comparison. The study also demonstrates that global crude oil prices can significantly influence the spot and futures prices of CPO. This research provides useful insight for stakeholders in the palm oil industry, policymakers, and investors.
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| format | Article |
| id | doaj-art-96cb059e18894064ae3fdca0580e0e27 |
| institution | Kabale University |
| issn | 2709-8206 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | Qubahan |
| record_format | Article |
| series | Qubahan Academic Journal |
| spelling | doaj-art-96cb059e18894064ae3fdca0580e0e272025-02-03T10:12:19ZengQubahanQubahan Academic Journal2709-82062024-01-014110.58429/qaj.v4n1a238238Exploring the Dynamics of CPO Spot and Futures Prices in Relation to Global Crude Oil Price: Evidence from India using ARDL Model Approach and Granger Causality TestsSupriya R0Rajesh Mamilla1VIT Business School, Vellore Institute of Technology, Vellore, Tamilnadu, India - 632014. VIT Business School, Vellore Institute of Technology, Vellore, Tamilnadu, India - 632014. This study examines the connection between Crude Palm Oil (CPO) spot and futures prices, and global crude oil prices using ARDL model and Granger causality tests to analyze data collected between January 2011 and April 2022, including CPO spot and futures prices, MCX, and WTI Crude oil futures. The results from the coefficient estimations show that both CPO future price percentage changes and crude oil price have a statistically significant impact on the CPO spot price. The study also reveals a long-term relationship between the dependent and independent variables in the level’s comparison. The study also demonstrates that global crude oil prices can significantly influence the spot and futures prices of CPO. This research provides useful insight for stakeholders in the palm oil industry, policymakers, and investors. https://journal.qubahan.com/index.php/qaj/article/view/238 |
| spellingShingle | Supriya R Rajesh Mamilla Exploring the Dynamics of CPO Spot and Futures Prices in Relation to Global Crude Oil Price: Evidence from India using ARDL Model Approach and Granger Causality Tests Qubahan Academic Journal |
| title | Exploring the Dynamics of CPO Spot and Futures Prices in Relation to Global Crude Oil Price: Evidence from India using ARDL Model Approach and Granger Causality Tests |
| title_full | Exploring the Dynamics of CPO Spot and Futures Prices in Relation to Global Crude Oil Price: Evidence from India using ARDL Model Approach and Granger Causality Tests |
| title_fullStr | Exploring the Dynamics of CPO Spot and Futures Prices in Relation to Global Crude Oil Price: Evidence from India using ARDL Model Approach and Granger Causality Tests |
| title_full_unstemmed | Exploring the Dynamics of CPO Spot and Futures Prices in Relation to Global Crude Oil Price: Evidence from India using ARDL Model Approach and Granger Causality Tests |
| title_short | Exploring the Dynamics of CPO Spot and Futures Prices in Relation to Global Crude Oil Price: Evidence from India using ARDL Model Approach and Granger Causality Tests |
| title_sort | exploring the dynamics of cpo spot and futures prices in relation to global crude oil price evidence from india using ardl model approach and granger causality tests |
| url | https://journal.qubahan.com/index.php/qaj/article/view/238 |
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