Modelling the common edible oil price based on the US Dollar Index

Edible oil is a type of lipid which can be used to prepare food and is derived from plants, animals, or microorganisms. It is a heart-healthy type of cooking oil that can handle high heat while still maintaining its nutritional value. The study of edible oil prices is critical because it shows the demand and supply, which can affect the economy of a country. Meanwhile, the US Dollar Index is also important as it is a global currency, and any changes that occur can affect other commodity prices. Therefore, this study will investigate the relationship between edible oil prices and the US Dollar Index. Additionally, the best model will also be determined. Using a sample of 229 observations, this study explored the use of multiple linear regression in analysing the standard edible oil price based on the US Dollar Index. The result indicated that the best models for the US Dollar Index are the prices of coconut, peanut, rapeseed and sunflower oil. In conclusion, this model is valuable for traders, producers, consumers, and policymakers to forecast price trends and make informed decisions based on currency movements and market conditions.