Crude Palm Oil Case Study

1778 Words8 Pages
Obiyathulla, et al (1999) states there are several issues related to the up down in the pricing efficiency and from the systematic patterns with the lead-lag relationships. Therefore, the results shows no proof regarding the increasing on the volatility if the underlying market after the introduction of the futures. The total amount of production greatly affect the price of the crude palm oil by giving supply to the trading market. By having more supply in the market,the higher the volatility of the price of the crude palm oil. By any means, if the supply is greater than the demand of the crude palm oil, there will be a surplus deficit in the crude palm oil products. Therefore, to gain customers, the firm can lower the price of the crude palm…show more content…
It based on how the consumer used the versatility of the crude palm oil. Some of consumers use it as body odor material such as soap and shampoo. While some other consumers use it as a cooking oil because crude palm oil is mostly edible. If only the consumer know how to well utilized the product, they can know the importance of the crude palm oil in our daily lives. Due to that, market of crude palm oil will increase in order to satisfy the demand of the consumers asking for crude palm oil product. Therefore,the demand will increase the price of the crude palm oil in the future. Export played an important role in determining the price of the crude palm oil. If the companies can export more than the import in the trading market, therefore they can make a country deficit by claiming the profit for exporting the products. Almost the same as the production, export is the process of trading in other country to make some international business for gaining profit in different way. If the demand from other countries is high, we should provide more to export the crude palm oil. In this situation, companies can grab the benefit of the future increasing price of the crude palm oil
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