Analyzing the impact of oil prices on commodity future listed on Pakistan mercantile exchange (PMEX) in the era of Covid-19
DOI:
https://doi.org/10.52461/sabas.v4i2.1513Keywords:
Agricultural commodity;, adoption barriers, COVID-19;, Oil prices and Pakistan mercantile exchangeAbstract
The main objective of this paper is to find the relationship between PMEX oil prices and agricultural commodities (wheat and soybean), using data on a daily basis from 2019 to 2021 in the era of the COVID-19 pandemic. With the Unit root test, regression is checked with the help of the Augmented Dickey Fuller’s (ADF) test. It is utilized to determine the long-term relationship between the variables of the study. Moreover, the connection among the selected variables is tested by the regression of the result commodity. In the results, we found that the selected variable of oil prices has become the first difference stationary and the selected variables (wheat and soybean) have become the second difference stationary based on the PMEX. The OLS results revealed a significant and positive relationship between agrarian commodities (wheat and soybean) and oil prices during the COVID-19 era. It reveals the long term relationship between oil prices and the agricultural commodity prices of wheat and soybeans on the Pakistan Mercantile Exchange (PMEX).References
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