The objective of this research is to find, if and how, real and financial technological advancements influence interactions in the agricultural commodities market. Statistical testing was conducted to identify potential correlation and any positive linear relationships in the price data between agricultural commodities and their complementary agricultural chemical producers. Testing if higher trade volumes in this industry result from higher technology usage were initiated by identifying shared linear growth between general index volumes and agricultural commodities, alongside their chemical complement stock volumes. The scientific development of chemical engineering mirrors financial technologies influencing trader behavior as a significant contributor to agricultural chemical developments. Multiple tests conducted used a variety of dependent variables as included in those specified combinations that may suggest a significant influence on potential volatility and correlation amongst these sectors.
The general result of this research showed evidence of a shared relationship among price and volume for ag-tech related stocks with respect to a generalized index (S&P500). The shared relationship between sample price averages generated from the S&P500 and the S&P500 Fertilizers & Agricultural Chemicals Sub-Industry Index (S5FERT) price suggests the growing involvement of traders in the agricultural commodities market and related speculative effects. Heteroscedasticity was indicated among the S&P500 sample volume averages and “Big Four” ag-tech stocks, supporting that more traders are entering markets because of technological advancements relative to trade platform accessibility. Lastly, agricultural chemical production and agricultural commodity returns demonstrate a common positive trend, suggesting that the agricultural commodity market and trade are gaining moment as a result of technological advancements.
Bachelor of Science (B.S.)
College of Business Administration
Armas, Savannah B., "The Effect of Technological Advancements on Interactions in the Agricultural Commodities Market" (2022). Honors Undergraduate Theses. 1109.