Oil Palm Industry Economic Journal Vol. 7 (2) September 2007 p. 12-18

Simulation Study on the Availability of Palm Oil Stock

Ahmad Borhan A Nordin; Mohd Arif Simeh; Faizah Mohd Shariff and Norhanani Mohd Baharim
Received:    Accepted:    Available Online:


The volume of palm oil stock has a strong influence on its price. The palm oil stock has long hovered around one million tonnes, and has become the physiological level below and above which prices tend to be bullish and bearish, respectively. The stock level mainly depends on the production and export of palm oil, which imports and local consumption play minor roles. An unanticipated high production of crude palm oil, generally leads to an unintended build-up of palm oil stock, especially when the export is slow. The rapid development in the production of palm oil and diverse usage of it, justify the revision of the physiological stock level that implies also the supply reliability of Malaysian palm oil.

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