https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Tue, 28 Aug 2018 05:18:57 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/a-study-on-the-relationship-between-the-futures-and-physical-prices-of-palm-oil/ Tue, 28 Aug 2018 05:18:57 +0000 https://opiej.mpob.gov.my/?p=220 Read more]]> The difference between cash and futures prices is known as basis. It represents the local demand and supply situation as well as the risk factors associated with the physical commodity trade. Forecast basis can be used with the futures prices to predict the cash price of palm oil. In addition, using the expected trends in basis can improve hedging by both buyers and sellers. Forecasts for other crops using basis from simple historical averages compare favourably with the results from more complex forecasting models. This work investigated the behaviour of crude palm oil (CPO) basis and compared practical methods of forecasting CPO basis by regions in Malaysia using multi-year historical averages.

]]> https://opiej.mpob.gov.my/us-agricultural-subsidies-and-their-implications-on-oilseeds-and-oils-and-fats-trade/ Mon, 27 Aug 2018 08:32:52 +0000 http://palmoilis.mpob.gov.my/prototype/opiej/?p=113 Read more]]> Palm oil is today the leading edible oil traded in the world market, accounting for more than 40% of the total export trade of 17 oils and fats. Although oil palm is widely recognized as the highest yielding oil crop, this does not in any way guarantee that it is the most cost competitive. The reality is that trade distorting measures in the form of agricultural production subsidies and export assistance programmes continue to challenge the competitiveness of palm oil and subsequently, its position as the most competitive vegetable oil. In highlighting the implications of trade distorting agricultural subsidies, it is clear that farmers planting decisions in the US are related to the attractive loan rate rather than the market price, thus introducing potential production-influencing effects into the market place

]]> https://opiej.mpob.gov.my/arbitration-issues-in-the-international-vegetable-oil-trade/ Mon, 27 Aug 2018 08:31:17 +0000 http://palmoilis.mpob.gov.my/prototype/opiej/?p=111 This paper concerns settling commercial disputes in the oils and fats trade. The usual method is litigation before the courts and commercial settlements. However, between these two extremes are arbitration, coordination and mediations. The FOSFA system of arbitration offers the best for obtaining commercial justice, swiftly and at a reasonable price.

]]> https://opiej.mpob.gov.my/malaysian-palm-oil-industry-at-crossroads-and-its-future-direction/ Mon, 27 Aug 2018 08:29:09 +0000 http://palmoilis.mpob.gov.my/prototype/opiej/?p=108 Read more]]> Palm oil accounts for 20% and 46% of the global oil and fats production and trade respectively. Malaysia is the world ís largest producer and exporter of palm oil with a 50% share of world palm oil production and 61% of exports. This paper assesses the growth of the Malaysian palm oil industry and the limitations of land and labour on the future growth of the industry. The industry ís competitive edge will continue to be a vital factor for its future development. Thus, in order to remain competitive, the industry needs to improve on productivity, explore opportunities to diversity the income base, widen the end-use base for palm oil, explore new marketing approaches and intensify vertical integration.

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