Palm Oil Developments No.51 (Dec 2009) p30-36

An Overview of the Prices of Selected Oils and Fats in 2009

RAMLI Abdullah

The volatility of oils and fats prices is a significant feature of the oils and fats sector. With no exception for the prices of palm products, the upswing and downswing of their prices imply that there are different factors affecting the prices at different times of the year. In 2009, speculation over the low production of palm oil in the early part of the year partly affected palm oil prices until the middle of the year. The volume of palm oil stock and soyabean oil price in the international market also influenced the palm oil prices. In addition, the trend of crude oil price also had some effect. This article discusses the prospects of palm oil prices in 2009 which appear to be good towards the end of the year. Our analysis shows that palm oil price is likely to firm up at around RM 2300 – RM 2400 in 2009.

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