Sample interview questions: What methodologies do you use to forecast agricultural commodity prices?
Sample answer:
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Econometric Models: These statistical models use historical data on supply, demand, and other factors to predict future prices. Common econometric models include linear regression, time series analysis, and dynamic stochastic general equilibrium (DSGE) models.
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Market Surveys: Surveys of farmers, traders, and other market participants can provide valuable insights into expected price movements. These surveys can be conducted in person, by phone, or online.
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Fundamental Analysis: This approach involves analyzing the supply and demand fundamentals of a commodity to forecast future prices. Factors considered include crop production, weather conditions, government policies, and global economic conditions.
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Technical Analysis: This approach uses historical price data to identify patterns and trends that may indicate future price movements. Technical analysts use a variety of charting techniques and indicators to identify potential trading opportunities.
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Expert Opinions: Agricultural economists, analysts, and other experts may provide forecasts based on their knowledge of the industry and analysis of the factors that affect commodity prices.
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Scenario Analysis: This … Read full answer
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