Oil Palm Industry Economic Journal Vol. 7 (2) September 2007 p. 1-11

Recent Development in the World Palm Oil Prices: An Overview

Mohd Basri Wahid; Mohd Arif Simeh and Jamil Nordin
Received:    Accepted:    Available Online:


In the past, there have been spikes in the palm oil price, mainly due to the demand and supply imbalance of oils and fats, in particular, that for soyabean oil. However, since mid 2006, the month-to-month spikes have become more pronounced and sustained, and been attributed not only to the overall supply and demand imbalance of edible oils and fats but also to the increasing demand for the oils as fuel. This development has shifted the demand curve for palm oil to the right. In this article, the impacts of the trend will be accessed on the consumption, trade, price competitiveness, investment in oil palm/palm oil and the use of palm oil for producing biodiesel.

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