The primary objective of this study is to identify the effect of oil prices on Pakistan's future and spot markets for agricultural products. Secondly, the report compares research findings to indicate that the demand for trading agricultural products in Pakistan is less susceptible to oil prices. Futures (futures of 1 and 2 months) and spot rice and sugar prices are considered to be proxies for the prices of agricultural products serving the respective markets. Analysis of oil price sensitivity is carried out through the Vector Error Correction model. In addition, the Granger Causality method for the study of causality is used. Futures (futures of 1 and 2 months) and spot rice and sugar prices are known as substitutes for the prices of agricultural products representing derivatives and spot markets, respectively. From October 2012 to October 2017, time series data consisting of 7 variables from 60 observations will be analysed. Then the observations are subject to comparison and discussed.
Please see the link :- https://www.journaljemt.com/index.php/JEMT/article/view/30262
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