Factors that influencing price of crude palm oil futures (FCPO) in Malaysia/ Nur Amirah Nadzirah Mat Nasir

In Malaysia, the price of crude palm oil has risen quite significantly since last few years. Like any other products and services, the volatility of the price are very influence by changes in the economic factors. This paper examines the factors that influencing price of crude palm oil (CPO) futures such as price of CPO, supply of CPO, domestic consumption of CPO, production of CPO and export of CPO. The observation of this research is 33 years which the data collected from 1985 to 2017 annually from the Data Stream and Internet sources. The methodology for the research used is the Multiple Regression Analysis. Multiple regression models are adopted in measuring about the relationships between the chosen variables. The result show there is strong relationship between price of CPO, supply of CPO and domestic consumption of CPO toward price of FCPO. The other finding shows there is a positive relationship between production and export of CPO toward price of FCPO in Malaysia. From the results of the study, some feasible recommendations are provided for the review of interested parties in order to enhance the predictive power of the movement of FCPO prices traded on the Bursa Malaysia Derivative Berhad's Futures Exchange.