Interdependence between Agricultural Futures: Evidence from Malaysian Physical CPO and CBOT Futures

Since palm oil and palm oil-based products remain as Malaysia’s largest contributor in terms of export earnings, this paper will focus on the price of Malaysian crude palm oil (CPO) paired together with Chicago Board of Trade (CBOT) agricultures futures commodities which include Soybean (SOY), Corn...

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Main Author: Nuryasmin Wahida, Hamil
Format: Article
Language:English
Published: INTI International University 2018
Subjects:
Online Access:http://eprints.intimal.edu.my/1499/
http://eprints.intimal.edu.my/1499/1/v1_2018_35.pdf
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author Nuryasmin Wahida, Hamil
author_facet Nuryasmin Wahida, Hamil
author_sort Nuryasmin Wahida, Hamil
building INTI Institutional Repository
collection Online Access
description Since palm oil and palm oil-based products remain as Malaysia’s largest contributor in terms of export earnings, this paper will focus on the price of Malaysian crude palm oil (CPO) paired together with Chicago Board of Trade (CBOT) agricultures futures commodities which include Soybean (SOY), Corn (CORN) and Soybean Oil (BO). All prices are then converted into return form. In order to identify the interdependence of both spot and future commodities, Vector Error Correction Model (VECM) approach have been used on the data. This paper also will show how Unit Root Test and Johansen Cointegration Test have been applied to this time series data.
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spelling intimal-14992021-05-10T07:56:09Z http://eprints.intimal.edu.my/1499/ Interdependence between Agricultural Futures: Evidence from Malaysian Physical CPO and CBOT Futures Nuryasmin Wahida, Hamil Q Science (General) SB Plant culture Since palm oil and palm oil-based products remain as Malaysia’s largest contributor in terms of export earnings, this paper will focus on the price of Malaysian crude palm oil (CPO) paired together with Chicago Board of Trade (CBOT) agricultures futures commodities which include Soybean (SOY), Corn (CORN) and Soybean Oil (BO). All prices are then converted into return form. In order to identify the interdependence of both spot and future commodities, Vector Error Correction Model (VECM) approach have been used on the data. This paper also will show how Unit Root Test and Johansen Cointegration Test have been applied to this time series data. INTI International University 2018 Article PeerReviewed text en http://eprints.intimal.edu.my/1499/1/v1_2018_35.pdf Nuryasmin Wahida, Hamil (2018) Interdependence between Agricultural Futures: Evidence from Malaysian Physical CPO and CBOT Futures. INTI JOURNAL, 2018 (35). ISSN e2600-7320 http://intijournal.intimal.edu.my/intijournal.htm
spellingShingle Q Science (General)
SB Plant culture
Nuryasmin Wahida, Hamil
Interdependence between Agricultural Futures: Evidence from Malaysian Physical CPO and CBOT Futures
title Interdependence between Agricultural Futures: Evidence from Malaysian Physical CPO and CBOT Futures
title_full Interdependence between Agricultural Futures: Evidence from Malaysian Physical CPO and CBOT Futures
title_fullStr Interdependence between Agricultural Futures: Evidence from Malaysian Physical CPO and CBOT Futures
title_full_unstemmed Interdependence between Agricultural Futures: Evidence from Malaysian Physical CPO and CBOT Futures
title_short Interdependence between Agricultural Futures: Evidence from Malaysian Physical CPO and CBOT Futures
title_sort interdependence between agricultural futures: evidence from malaysian physical cpo and cbot futures
topic Q Science (General)
SB Plant culture
url http://eprints.intimal.edu.my/1499/
http://eprints.intimal.edu.my/1499/
http://eprints.intimal.edu.my/1499/1/v1_2018_35.pdf