Sugar price dynamics at daily frequency: A structural equation modelling approach

dc.contributor.authorMalátková, Tereza
dc.contributor.authorGangur, Mikuláš
dc.date.accessioned2026-01-29T09:54:19Z
dc.date.available2026-01-29T09:54:19Z
dc.date.issued2025
dc.description.abstract-translatedThis study examines the impact of daily fluctuations in financial and commodity markets on sugar returns. Using a multi-market Structural Equation Model (SEM), three latent constructs are identified: Fundament (a proxy for risk sentiment), Stock (equity market), and Commodity (commodity market). The analysis employs daily log-returns from 2005 to 2025, with missing observations treated using Full Information Maximum Likelihood (FIML) and parameters estimated via robust Maximum Likelihood with Robust standard errors (MLR). The confirmatory factor analysis (CFA) demonstrates satisfactory model fit, indicating that the commodity factor is primarily shaped by energy contracts, whereas the association between equity indicators and the Stock factor is less pronounced. Standard validity tests (HTMT, Fornell–Larcker) confirm the discriminant validity of the latent constructs. In the structural equation, the commodity factor emerges as the dominant short-term driver of sugar price fluctuations, while the effects of equity sentiment and fundamental risk factors diminish once this channel is considered. The model explains a moderate but economically meaningful share of the variance in daily sugar returns. These findings highlight the interconnectedness between energy and agricultural markets and underscore the relevance of cross-market linkages in commodity price formation. From a practical perspective, they suggest that sugar risk management and hedging strategies should be primarily aligned with the dynamics of energy markets rather than with broader financial sentiment indicators.en
dc.format9 s.cs
dc.format.mimetypeapplication/pdf
dc.identifier.doihttps://doi.org/10.24132/jbt.2025.15.2.44_52
dc.identifier.issn2788-0079
dc.identifier.urihttp://hdl.handle.net/11025/64540
dc.language.isoenen
dc.publisherZápadočeská univerzita v Plznics
dc.rights© Západočeská univerzita v Plznics
dc.rights.accessopenAccessen
dc.subjectenergiecs
dc.subjectCFAcs
dc.subjectkomoditní trhcs
dc.subjectSEMcs
dc.subjectcukrcs
dc.subject.translatedenergyen
dc.subject.translatedCFAen
dc.subject.translatedcommodity marketen
dc.subject.translatedSEMen
dc.subject.translatedsugaren
dc.titleSugar price dynamics at daily frequency: A structural equation modelling approachen
dc.typečlánekcs
dc.typearticleen
dc.type.statusPeer-revieweden
dc.type.versionpublishedVersionen
local.files.count1*
local.files.size252770*
local.has.filesyes*

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