The oils and fats sector has always exhibited a very common feature of volatility. This is true of the palm products for which the upswing and downswing of their prices imply that there are different factors affecting them at different times of the year. In 2009, speculations on the low production of palm oil in the early part of the year partly affected palm oil prices until the middle of the year. Other factors included the developments in the palm oil stock and soyabean oil price in the international market. Another influencing factor was the development of crude petroleum oil price. In 2010, speculations on the El Niño will probably be the main factor affecting production and indirectly affecting prices. This article discusses the development of palm oil prices in 2009 which appear to be good for the palm oil industry, and the prospects in 2010 for which prices are forecasted to be in the range of RM 2500- RM 2800.
Keywords: MPOB PUBLICATIONS, MARKET DEVELOPMENT, PALM OIL & OIL PALM INDUSTRY-Malaysia, PALM OIL, STATISTICS, FORECAST