Examining seasonal anomalies in crude palm oil markets

Crude palm oil (CPO) is a crucial global agricultural commodity, and the efficiency of its market is important for maintaining price stability. This study delves into the assessment of market efficiency in the primary CPO markets, focusing on seasonal anomalies as a key indicator. The research analy...

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Main Authors: Hisham, M., Mohd Nor, Normaziah, Li, Wenhui
Format: Article
Published: Inderscience Publishers 2025
Online Access:http://psasir.upm.edu.my/id/eprint/119383/
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author Hisham, M.
Mohd Nor, Normaziah
Li, Wenhui
author_facet Hisham, M.
Mohd Nor, Normaziah
Li, Wenhui
author_sort Hisham, M.
building UPM Institutional Repository
collection Online Access
description Crude palm oil (CPO) is a crucial global agricultural commodity, and the efficiency of its market is important for maintaining price stability. This study delves into the assessment of market efficiency in the primary CPO markets, focusing on seasonal anomalies as a key indicator. The research analyses daily, weekly, and monthly data to investigate these anomalies, recognising variations among countries. Our empirical findings reveal significant seasonal anomalies in crude palm oil market. Malaysia and Indonesia exhibit significant day-of-the-week effects, while all four countries demonstrate substantial positive returns during weeks 6 and 52. Notably, Malaysia experiences a significant positive return during October. Furthermore, our research underscores the role of good sentiment around holidays and seasonal export activities as drivers behind these seasonal anomalies. In essence, this study makes a significant contribution to our understanding of market efficiency and the presence of seasonal anomalies in the primary CPO markets. It emphasises the influence of sentiment and export cycles on market returns, providing valuable insights for market participants and policymakers.
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spelling upm-1193832025-09-22T07:32:07Z http://psasir.upm.edu.my/id/eprint/119383/ Examining seasonal anomalies in crude palm oil markets Hisham, M. Mohd Nor, Normaziah Li, Wenhui Crude palm oil (CPO) is a crucial global agricultural commodity, and the efficiency of its market is important for maintaining price stability. This study delves into the assessment of market efficiency in the primary CPO markets, focusing on seasonal anomalies as a key indicator. The research analyses daily, weekly, and monthly data to investigate these anomalies, recognising variations among countries. Our empirical findings reveal significant seasonal anomalies in crude palm oil market. Malaysia and Indonesia exhibit significant day-of-the-week effects, while all four countries demonstrate substantial positive returns during weeks 6 and 52. Notably, Malaysia experiences a significant positive return during October. Furthermore, our research underscores the role of good sentiment around holidays and seasonal export activities as drivers behind these seasonal anomalies. In essence, this study makes a significant contribution to our understanding of market efficiency and the presence of seasonal anomalies in the primary CPO markets. It emphasises the influence of sentiment and export cycles on market returns, providing valuable insights for market participants and policymakers. Inderscience Publishers 2025-06-02 Article PeerReviewed Hisham, M. and Mohd Nor, Normaziah and Li, Wenhui (2025) Examining seasonal anomalies in crude palm oil markets. Global Business and Economics Review, 32 (4). pp. 377-401. ISSN 1097-4954; eISSN: 1745-1329 https://www.inderscience.com/offer.php?id=146498 10.1504/gber.2025.10062377
spellingShingle Hisham, M.
Mohd Nor, Normaziah
Li, Wenhui
Examining seasonal anomalies in crude palm oil markets
title Examining seasonal anomalies in crude palm oil markets
title_full Examining seasonal anomalies in crude palm oil markets
title_fullStr Examining seasonal anomalies in crude palm oil markets
title_full_unstemmed Examining seasonal anomalies in crude palm oil markets
title_short Examining seasonal anomalies in crude palm oil markets
title_sort examining seasonal anomalies in crude palm oil markets
url http://psasir.upm.edu.my/id/eprint/119383/
http://psasir.upm.edu.my/id/eprint/119383/
http://psasir.upm.edu.my/id/eprint/119383/