Research paper on Evidence from the Bounds Test of Level Relationship and Causality Analysis on the Influence of Soybean Futures and Crude Oil Futures on Palm Oil Indexes

Description

Title: Evidence from the Bounds Test of Level Relationship and Causality Analysis on the Influence of Soybean Futures and Crude Oil Futures on Palm Oil Indexes

Abstract: Utilizing monthly data from the three palm oil indexes listed in Bursa Malaysia—the Asian palm index, Malaysian palm index, and Plantation index—and spanning the period of January 2010 to June 2020, this study examines the effects of soybean and crude oil futures on palm oil indexes. The Autoregressive Distributed Lag (ARDL) bounds test approach and causality test were used to analyze the effects. According to the statistical results, there is a long-term relationship between crude oil futures and crude palm oil as well as a short-term relationship between soybean futures, crude oil futures, and crude palm oil. While the Plantation index has a short-term relationship with crude oil futures, crude palm oil, and exchange rates, the Malaysian palm index has a short-term relationship with soybean futures and crude palm oil. This study suggests close monitoring of crude oil futures for the long-term strategy. The short-term strategy, meanwhile, necessitates close attention to the crude oil and soybean futures markets. The empirical results eventually suggested that interested parties, including fund managers, investors, and traders, should focus on crude oil and soybean futures to reduce risk and diversify their portfolios, with a stronger emphasis on crude oil futures.

Keywords: Utilizing monthly data from the three palm oil indexes listed in Bursa Malaysia—the Asian palm index, Malaysian palm index, and Plantation index—and spanning the period of January 2010 to June 2020, this study examines the effects of soybean and crude oil futures on palm oil indexes. The Autoregressive Distributed Lag (ARDL) bounds test approach and causality test were used to analyze the effects. According to the statistical results, there is a long-term relationship between crude oil futures and crude palm oil as well as a short-term relationship between soybean futures, crude oil futures, and crude palm oil. While the Plantation index has a short-term relationship with crude oil futures, crude palm oil, and exchange rates, the Malaysian palm index has a short-term relationship with soybean futures and crude palm oil. This study suggests close monitoring of crude oil futures for the long-term strategy. The short-term strategy, meanwhile, necessitates close attention to the crude oil and soybean futures markets. The empirical results eventually suggested that interested parties, including fund managers, investors, and traders, should focus on crude oil and soybean futures to reduce risk and diversify their portfolios, with a stronger emphasis on crude oil futures.

Paper Quality: SCOPUS / Web of Science Level Research Paper

Subject: Economics

Writer Experience: 20+ Years

Plagiarism Report: Turnitin Plagiarism Report will be less than 10%

Restriction: Only one author may purchase a single paper. The paper will then indicate that it is out of stock.

What will I get after the purchase?

A turnitin plagiarism report of less than 10% in a pdf file and a full research paper in a word document.

In case you have any questions related to this research paper, please feel free to call/ WhatsApp on +919726999915