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On the relationship between weather and Agricultural Commodity Index in India: a study with reference to Dhaanya of NCDEX

Author

Listed:
  • Chinnadurai Kathiravan

    (Bharathidasan University)

  • Murugesan Selvam

    (Bharathidasan University)

  • Desti Kannaiah

    (James Cook University)

  • Kasilingam Lingaraja

    (Bharathiar University)

  • Vadivel Thanikachalam

    (Bharathidasan University)

Abstract

This paper proposes to investigate the Co Movement and Causal Relationship, among the three weather factors (temperature, humidity, and wind speed) and the returns of the Agriculture Commodity Index called Dhaanya, in India. The study employed the secondary daily data of weather in five sample cities (Chennai, Mumbai, Delhi, Kolkata and Hyderabad), and Agriculture Commodity Index called Dhaanya, in India. Statistical tools like Descriptive Statistics, Unit Root, Correlation Matrix, and Granger Causality Test were employed. This study found that the temperature and wind speed influenced the investors’ mood in Chennai and Mumbai, in respect of Agriculture Commodity Index, namely Dhaanya. The findings of this study would help the investors in making investment decisions rationally, on the basis of weather condition.

Suggested Citation

  • Chinnadurai Kathiravan & Murugesan Selvam & Desti Kannaiah & Kasilingam Lingaraja & Vadivel Thanikachalam, 2019. "On the relationship between weather and Agricultural Commodity Index in India: a study with reference to Dhaanya of NCDEX," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 667-683, March.
    • Handle: RePEc:spr:qualqt:v:53:y:2019:i:2:d:10.1007_s11135-018-0782-x
    DOI: 10.1007/s11135-018-0782-x
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    Cited by:

    1. Chang, Chiu-Lan & Fang, Ming, 2022. "The connectedness between natural resource commodities and stock market indices: Evidence from the Chinese economy," Resources Policy, Elsevier, vol. 78(C).
    2. Shahzad, Farrukh & Bouri, Elie & Mokni, Khaled & Ajmi, Ahdi Noomen, 2021. "Energy, agriculture, and precious metals: Evidence from time-varying Granger causal relationships for both return and volatility," Resources Policy, Elsevier, vol. 74(C).
    3. Chinnadurai Kathiravan & Murugesan Selvam & Balasundram Maniam & Sankaran Venkateswar & J. Gayathri & Amrutha Pavithran, 2019. "Effect of Weather on Cryptocurrency Index: Evidences From Coinbase Index," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(4), pages 108-118, July.
    4. Chinnadurai Kathiravan & Murugesan Selvam & Balasundram Maniam & Leo Paul Dana & Manivannan Babu, 2023. "The Effects of Crude Oil Price Surprises on National Income: Evidence from India," Energies, MDPI, vol. 16(3), pages 1-16, January.

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    More about this item

    Keywords

    Weather factors; NCDEX; Descriptive statistics; Unit root test; Correlation matrix; Granger causality test;
    All these keywords.

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • N2 - Economic History - - Financial Markets and Institutions

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