Palm oil bulk traders buy large quantities of processed palm oil and sell them in the local market, export them to international markets or store them.
In the palm fruit harvest season, usually between March and May each year, due to the large number of products on the market, the price of palm oil will reach a very low level. However, during the non-palm fruit harvest period, palm oil will become very scarce, so the price will rise soon.
The shortage of palm oil usually occurs between September and December, during which we can usually see the price of palm oil rose about 100% -110%.
A palm oil bulk trader has set up a reserve plan that allows his people to buy from the market at a very cheap price at ample time and then sell it back to the market when the market is scarce. This strategy clearly requires the storage of palm oil space, which can lead to a lot of holding, handling and transportation costs, which greatly increase the price of palm oil.
During the harvest period, most of the bulk traders in small rural areas buy palm oil and store them in huge containers until they are able to sell them in very attractive profits in towns or cities or to international markets, and then sold.
Palm oil is more stable than other edible oils, and it can withstand long periods of storage (usually up to ten months) even at high temperatures. This period allows bulk traders to have enough time to sell products and get good profits in the process.