https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Tue, 28 Aug 2018 06:34:35 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/recent-developments-of-malaysian-palm-oil-stock-level/ Tue, 28 Aug 2018 06:34:35 +0000 https://opiej.mpob.gov.my/?p=251 Read more]]> The level of palm oil stock is a strong indicator of its price and it comprises crude palm oil and processed palm oil. In the past, the palm oil stock has for a long time hovered around 1 million tonnes, and this volume has become the psychological level below and above which prices tend to be bullish and bearish, respectively. The end stock mainly depends on the production and export of palm oil, while imports and local consumption play minor roles. Based on changes in the supply and demand factors, it was estimated that 1.8 million tonnes could be considered as the new level of palm oil stock for the Malaysian palm oil industry.

]]> 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/analysis-of-palm-oil-cost-of-production-survey-2002/ Tue, 28 Aug 2018 04:30:36 +0000 https://opiej.mpob.gov.my/?p=166 Read more]]> A cost of production survey of the Malaysian palm oil industry was undertaken in mid 2003. The analysis of the data revealed a number of strategies to reduce cost of production. These are the exploitation of the economies of scale, economies of scope, reducing on certain costs in the high cost companies and integrating the estate and mill.

]]> https://opiej.mpob.gov.my/palm-oil-products-exports-prices-and-export-duties-malaysia-and-indonesia-compared/ Tue, 28 Aug 2018 01:25:57 +0000 https://opiej.mpob.gov.my/?p=152 Read more]]> Malaysia and Indonesia are the largest and second largest producers and exporters of palm oil products in the world where together they contribute 83.5% of production and 89.6% of palm oil trade in the world. Both countries export crude palm oil (CPO) and processed palm oil(PPO). The trend in exports indicates Malaysia exporting increasing quantities of CPO in the new millennium when exports of CPO increased from 0.4 million tonnes to 1.3 million tonnes in 2000 and 2001, respectively, while exports of Indonesian CPO increased from 1.8 to 2.0 million tonnes. PPO contributed to the larger share of palm products exports of both countries. Monthly FOB prices for Malaysian CPO and PPO in 2001 and 2002 were lower than those of Indonesia but prices for the latter were lower in the international market indicating price competition. Tariffs are imposed on exports of palm products by both countries with the objective initially of raising revenue. In the case of Malaysia, the objective later shifted to that of encouraging downstream processing while for Indonesia, it reflected a goal of keeping cooking oil prices to consumers down during periods of high oils and fats prices. An evaluation of taxes imposed on exports of both countries indicated that there is a difference in the way the export duty payable in the two countries computed. The different manners of computing led to high duty payable in the case of CPO exports by Malaysia when compared to that of Indonesia. There is no duty on exports of PPO from Malaysia while Indonesian duty is very low.

]]> https://opiej.mpob.gov.my/mpob-daily-ffb-reference-pricetowards-a-more-transparent-market/ Mon, 27 Aug 2018 07:41:36 +0000 http://palmoilis.mpob.gov.my/prototype/opiej/?p=85 Read more]]> The objective of this paper is to give a detailed explanation regarding the dissemination of the MPOB Daily Fresh Fruit Bunches (FFB) Reference Price. The paper will highlight the price formula used and the computation of the Reference Price according to the various regions. The Reference Price is meant as a guide to assist the smallholders in determining their FFB price in relation to crude palm oil (CPO) and palm kernel (PK) prices. The single reference price will create a transparent market in FFB trading, which will help towards ensuring a more harmonious relationship amongst smallholders, FFB traders and millers.

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