Factors that affecting crude palm oil (CPO) price / Nazatul Izwah Che Mat

Crude palm oil industry is very important in producing goods such as detergents, foods and daily necessity. This paper aims is to analyze out the factors that affecting the crude palm oil (CPO) price. The variables considered are the price of soybean oil, price of crude oil, interest rate, palm oil supply, palm oil demand and foreign exchange. In this study is to determine the either the selected independent variable give significant and not significant to the CPO price. The CPO price will always changes because the influences from the fundamental and economics factors. So, this study I try to determine the relationship of another substitute good to the palm oil which is soybean oil price. Whether it can give an affect to CPO price. Moreover, the interest rates is been used in base lending rate (BLR). There have nominal interest rate and real interest rate. Nominal interest is the inflation are not been accounted and vice versa for real interest rate. Furthermore, the impact of increasing number of population in world will directly give to the supply and demand of palm oil. It is to identify the changes of CPO price due to the demand and supply of palm oil. Lastly, the foreign exchange is also changes in their value depending on the currency of that country. All of this factors need to investigate to make sure all the traded crude palm oil must give profitable to both producer, hedgers, exporters and importers.