Crude palm oil (CPO) FOB spot price has risen from the low of MYR1,805 (Aug 15) to approximately MYR3,300 (Feb 17). Will we see continue run in this commodity?
Based on a multiple regression analysis (variables – USDMYR forex, Soy Bean Oil and Brent Crude), we derive a simple forecast range for the CPO (FOB Spot price):
Based on the analysis, it appears that the current FOB spot price of MYR3,300 is 13.9% higher than predicted value of MYR2,896, with a 95%-confidence interval of between MYR2,329 and MYR3,462.
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