It is a well-known fact that prices of oils and fats in the world market are very volatile. Prices fluctuate in a manner that reflects the supply and demand situations in the world. Any shortage will lead to an increase in prices and any surplus may result in a fall. As reflected in Table 1, there is clear evidence of the variability of these price movements in the past. The price of refined bleached deodorized (RBD) palm olein, for instance, showed a rising trend in the long-term from US$ 332 t-1 in 1990 to US$ 426 t-1 in 2002. However, the price fluctuated yearly in a random fashion depending on the world demand and supply of oils and fats during the period. Other oils and fats also behaved in the same manner, as indicated in Table 1.
Keywords: MPOB PUBLICATIONS, MARKET DEVELOPMENT, PALM OIL & OIL PALM INDUSTRY-Malaysia, PALM OIL, STATISTICS, FORECAST