Oil Palm Industry Economic Journal Vol. 13 (2) September 2013 p. 1-14

An Analysis on Trends of Vegetable Oil Prices and Some Factors Affecting CPO Price

Ramli Abdullah*
Received:    Accepted:    Available Online:


Price is determined by market forces of supply and demand, interacting together to produce an equilibrium price. Mismatch of these forces can cause price to change. Frequent and continuous changes in price will lead to volatility which appears to be increasing over time, especially in the oils and fats sector. This gives an indication that the sector has become complicated over time. Not only the volatility increased over time, the prices themselves had up-trended and exhibited the presence of trend factor. Other factors, such as seasonal and cyclical factors were not transparent. This article analyses trends for prices of selected oils and fats, including that of crude oil. It also describes the strategies of the Malaysian government to narrow down the widening gap between soyabean oil and palm oil prices.

About Post Author


* Malaysian Palm Oil Board,
6 Persiaran Institusi, Bandar Baru Bangi,
43000 Kajang, Selangor, Malaysia.
E-mail: ramlia@mpob.gov.my