An Analytical Study On The Correlation Between Soybean And Palm Oil Prices And The Interplay Of Market Forces

This paper studies the price relationship between two important agricultural commodities: soybean oil and palm oil. For the analysis the following statistical methods – Pearson correlation and multivariate regression – have been used on a simulated dataset over a fifteen-year period. The present study unwraps the economic, environmental, and policy factors that contribute to their interconnected nature. While the results show a strong positive correlation between the two future prices, the outcomes also provide a much broader perspective on the role of economic conditions, including the global supply chain and demand spillover. Moreover, environmental trends and policy shifts together shape future price trends equally. In addition, the paper forecasts the possible future price trend of each commodity using ARIMA and helps to determine the market direction. This research contributes to the broader discussion on agricultural economics and commodity markets, offering a data-driven perspective that supports strategic planning and informed action in the face of market uncertainties and environmental challenges