Author Topic: CPO Latest Updated News  (Read 139316 times)

Offline vincent88

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Re: CPO Latest Updated News
« Reply #150 on: January 26, 2015, 10:50:38 PM »
Malaysia Jan. 1-25 Palm Oil Exports 877,730 Tons(-19% mom), SGS Reports

Offline vincent88

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Re: CPO Latest Updated News
« Reply #151 on: January 26, 2015, 11:08:53 PM »
Palm oil drops to weakest in 5 weeks as demand wanes

[KUALA LUMPUR] Malaysian palm oil futures fell for a third session on Monday, dropping to their lowest in nearly five weeks as poor demand from major buyers sparked concern that palm's use in food and fuel industries may continue to slump in coming months.

Palm prices ran up 14 per cent from December to a six-month high of RM2,394 by Jan 15 after monsoon flooding wreaked havoc in parts of Malaysia, the second-biggest grower, inundating estates and destroying infrastructure.

But market players say worries about the devastation have cooled, and even if growers expect another big drop in output this month, waning export demand from India, China and Europe plus the rout in crude oil could offset that.

"Production is down temporarily, but soon it will rise again, and people are worried about how demand will be, with the poor economic growth," said a trader with a foreign commodities firm in Kuala Lumpur.

"We don't know whether China will buy equal or less amounts of edible oil from last year. Biofuel demand is bad, biodiesel operators can't do anything," the trader added.

"These are the two main concerns keeping prices under pressure." The benchmark April contract had dropped 2.5 per cent to RM2,175 (US$601) per tonne by Monday's close, after touching RM2,170 in late trade, the lowest since Dec 23.

Malaysian exports of palm oil products fell 17.7 per cent to 886,189 tonnes between Jan 1-25 from the same period a month before, according to cargo surveyor Intertek Testing Services.

Another cargo surveyor, Societe Generale de Surveillance, reported that exports for the same period slid 19 per cent.

The Malaysian Palm Oil Association, a growers' group, estimates crude palm oil production fell 24.3 per cent between Jan 1 and 20. Output from Sarawak alone, Malaysia's second-largest palm-growing state, was forecast to have dropped more than 28 per cent in the same period.

Oil prices declined on Monday, with US crude falling close to a nearly six-year low, as Saudi Arabia's new King Salman moved to assuage fears of an unstable transition and any policy change in the world's largest oil exporter.

In other vegetable oil markets, the US soyoil contract for March fell 1.1 per cent in late Asian trade. The most active May soybean oil contract on the Dalian Commodity Exchange lost 1.0 per cent.

Offline vincent88

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Re: CPO Latest Updated News
« Reply #152 on: January 31, 2015, 03:42:18 PM »
Palm oil posts worst start to year since 2010 as demand slows

[KUALA LUMPUR] Palm oil capped the biggest January decline since 2010 as demand weakens amid a supply glut.

Futures dropped 5.3 per cent this month, the most since November, as a slump in exports from Malaysia, the largest producer after Indonesia, signals a slowdown in demand. Output in the two top suppliers is set to climb to a record this year.

Palm oil, used in food and fuel, slumped 16 per cent in the past year as a plunge in petroleum costs reduced its allure and global soybean crops headed for an all-time high. Soybean oil fell to a six-year low on Thursday, increasing its attraction as an alternative. Slowing world economies may further hurt demand, said Carey Wong, an analyst at OCBC Investment Research.

"Supply is still going to be pretty robust," Mr Wong said by phone from Singapore. "It's completely unprofitable to process palm into biodiesel."

Futures dropped as much as 1.3 per cent to RM2,106 (US$580) a metric ton on the Bursa Malaysia Derivatives, the lowest in more than a month, before closing 0.6 per cent higher at RM2,147. Soybean oil tumbled to 29.32 cents a pound in Chicago on Thursday, the lowest since 2008.

Palm rallied to RM2,394 about two weeks ago, the highest since July, as floods in Malaysia disrupted production. The advance was aided by a weakening ringgit, which touched a five-year low against the dollar on Thursday.

"Supply constraints and depreciation of Malaysian ringgit are supportive of palm prices in the short-term," Rabobank International analysts led by Stefan Vogel wrote in a report. The outlook for a good soybean crop in South America and weak demand including from biodiesel may weigh on prices, they said.

Palm oil has surged to a premium over gas oil of US$111 a ton from a discount of about US$259 in August.

Shipments from Malaysia dropped 18 per cent to 886,189 tons in the first 25 days of January from a month earlier, Intertek, a surveyor, said on Jan 26. Output may climb to a record 20.09 million tons this year from 19.67 million tons in 2014, according to the palm oil board.

Exports from Indonesia fell 13 per cent to 1.97 million tons in December from a month earlier, the Indonesian Palm Oil Association said in Jakarta on Friday. Production may rise to 33 million tons from 31.5 million tons in 2014, said Joko Supriyono, secretary general.

"On the demand side, we have the World Bank cutting the outlook for global economic growth," OCBC's Mr Wong said. "There's also the substitute vegetable oil, soybean oil, at six-year lows. We don't see any positive catalysts."

Offline vincent88

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Re: CPO Latest Updated News
« Reply #153 on: January 31, 2015, 05:03:46 PM »
Output and demand to rise in 2015, say industry experts

GLOBAL supply of palm oil – the world’s most tradeable vegetable oil – will be marginally higher this year with continued demand expected from traditional markets like China, India, Pakistan and the European Union (EU), say industry experts.

Total production from top producers Indonesia, Malaysia and Thailand is expected to hit 61.8 million tonnes this year, up 4.3% from 59.3 million tonnes last year.

Global palm oil export will increase by 3.3% to 43.3 million tonnes this year, according to forecast by independent vegetable oils and fats research group, Oil World.

Top producer Indonesia will continue to lead the growth in the global palm oil supply this year, contributing about 32.7 million tonnes from its expanding mature oil palm areas, it adds.

During the period 2013-14, Indonesia produced 31 million tonnes of palm oil and exported about 21 million tonnes, says Indonesian Palm Oil Association executive director Dr Fadhil Hasan.

Lately, there have been dramatic changes to the composition of Indonesia’s palm oil exports, which are now dominated by production in downstream operations in the republic as well as the increase in domestic biofuel consumption.

Meanwhile, palm oil production in Malaysia is expected to increase slightly to 20.1 million tonnes this year, due to the prolonged dry weather in the early part of 2014 that will result in oil palm stress this year thus affecting fresh fruit bunches.

According to latest statistics on the Malaysian palm oil industry, crude palm oil (CPO) production in Malaysia rose to 19.67 million tonnes in 2014 (19.2 million tonnes in 2013) – thanks to the higher oil extraction rate and new production areas particularly in Sarawak.

The 10 major export destinations for Malaysian palm oil last year were China, India, Pakistan, the EU, the Philippines, Vietnam, the United States, Japan, Iran and Benin, a republic in West Africa. These markets accounted for 12.59 million tonnes or 73% of Malaysia’s total palm oil exports last year.

On the other hand, Thailand is expected to experience poor palm oil output this year at about 2.1 million tonnes because its oil palm areas mainly in the southern region were badly hit by the recent floods.

Indonesia and Malaysia are still the key determinants of the world’s palm oil supply – both countries account for about 85% of the total world production, says industry expert Ling Ah-Hong of Sabah-based Gan Ling Sdn Bhd.

Ling, who is formerly IJM Plantations Bhd executive director as well as former COO Plantations of Hap Seng Consolidated Bhd, says that improving palm oil age in Indonesia is the key to future supply growth.

Malaysia, however, will need to step up on its replanting activities by about 150,000ha to 200,000ha annually to boost its palm oil supply growth, he says.

For this year, Ling estimates palm oil production from Indonesia to hit 32.4 million tonnes, Malaysia 20.3 million tonnes and Thailand 1.8 million tonnes.

Higher demand

South Asian markets namely India, Pakistan and Bangladesh will continue to support palm oil by increasing their imports this year, says Oil World.

It adds that palm oil is expected to continue to dominate India’s imports of oils and fats this year despite the recent increase in import duty on edible oils in the country.

Analysts have pointed out that the growth rate of palm oil import into India could be lower if the price discount between palm oil and its rival soybean oil continues to narrow further.

In recent months, the price discount between palm oil and soybean oil has narrowed significantly to between US$50 and US$60 per tonne compared with the traditional price discount of about US$150 per tonne in the past one decade, according to plantation industry expert M.R. Chandran.

For India, total oils and fats consumption is expected to be in the range of 21.5 million tonnes this year, of which imports account for 12.5 million tonnes due to the expected increase in the influx of palm oil and soybean oil. Palm oil imports into India is expected to reach 8.3 million tonnes this year, compared with 7.7 million tonnes in 2014, adds Oil World.

Pakistan will also see its palm oil imports increasing by about 5%-7% this year from 2.4 million tonnes estimated in 2014, Oil World says. Pakistan’s intake of palm oil will also hinge on the commodity’s price discount and that of other vegetable oils such as soybean oil, Oil World adds.

Another major palm oil importer this year is the East Asian market namely China, South Korea and Japan.

The palm oil intake in the East Asian market is expected to continue to increase this year due to the current lower price which makes the commodity an attractive option.

Malaysia is the largest supplier and exporter of palm oil to this region, while China remained the largest importer of oils and fats in the East Asian region last year, says Oil World.

European market

As for the EU market, Oil World points out that imports of oils and fats are expected to be lower at 10.3 million tonnes this year (10.7 million tonnes in 2014). This is in line with anticipation of lower consumption at 31.5 million tonnes this year.

According to the European Commission, about 40% of the vegetable oils are used for the EU biofuel production.

With the anticipated lower rapeseed output in Europe due to potential impact from a strong El Nino/La Nina effect in 2015-2016, there will likely be lower demand from the biodiesel sector in the EU.

On the other hand, LMC International Ltd economist Dr Joseph Feyertag says at a recent seminar that there is still good demand for palm oil in the Eastern European markets.

The largest markets for palm oil are found in the Black Sea region, namely Russia, Slovakia, Romania, Bulgaria and Ukraine, he says.

“Outside of this region, palm oil seems to be considerably under utilised,” he adds.

Moving forward, he believes that palm oil still has a long way to go in Eastern European markets.

Weather conditions

Meanwhile, industry expert Ling has cautioned on the possibility of an emerging weak El Nino phenomenon in the first quarter 2015 but “it is unlikely to reduce the growth in global palm oil supply this year.”

For Malaysia, the uncertain weather conditions in recent months could result in mixed impacts on the palm oil production in the Peninsula as well as Sabah and Sarawak.

An El Nino-induced drought could trigger multiple lagged effects on production such as bunch failure, floral abortion and preferential male flowers formation – with effects lasting up to 24 months later.

Hence, production could be reduced by up to 30% depending on the severity of the drought, adds Ling.

Offline vincent88

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Re: CPO Latest Updated News
« Reply #154 on: February 04, 2015, 11:03:25 PM »
Palm oil climbs to 1-week high on biodiesel hopes

Malaysian palm oil futures climbed to their highest in a week today, tracking cues from crude markets and as investors pinned hopes that Indonesia's plan to raise biodiesel subsidies will boost its consumption. Indonesia's government on Tuesday proposed a threefold increase in its biodiesel subsidies to 5,000 rupiah (40 US cents) per litre from 1,500 rupiah, aimed at protecting the top producer's fledgling biofuel industry against lower crude prices. While the proposal still needs parliamentary backing before becoming law, analysts are optimistic that higher subsidies will make producing and consuming biodiesel more economic.

"We view this proposal as a potential game changer for the biodiesel industry in Indonesia," said CIMB analyst Ivy Ng, who estimates that the increase will translate to a subsidy of around US$350 (RM1,249) per tonne for biodiesel producers and fuel distributors. "The higher subsidy will significantly raise the CPO-biodiesel breakeven price level and revive biodiesel consumption." The benchmark April contract gained 2.5% to close at RM2,220 (US$624) per tonne today, with prices at their highest since January 28. Total traded volume stood at 66,186 lots of 25 tonnes, above the average 35,000 lots. Traders said the earlier jump in crude prices lifted the Malaysian palm contract which resumed trade on Wednesday. Markets were closed on Monday and Tuesday for public holidays. "Positive commodity and energy market sentiment over the two days of Bursa Malaysia closure likely to stoke further gains in palm future prices today," said a trader with a local commodities brokerage in Malaysia. Oil prices rose in Tuesday US trade after a tumbling dollar sent most commodities rallying, bringing crude's four-day rise to about 19% – its biggest such advance since January 2009. However, prices later slipped on renewed concerns over global demand and swelling stocks, with Brent 53 cents lower at US$57.38 a barrel by 0911 GMT (5.11pm Malaysian time) and US crude down 88 cents to $52.17. Lacklustre export demand to key buyers, coupled with a strong ringgit, however, may limit gains. Cargo surveyors reported that Malaysian exports of palm oil products in January dropped 15% from a month earlier to around 1.11 million tonnes, as shipments to Europe, China and India waned. Meanwhile, the ringgit hit a more than three-week high of 3.546 per dollar today, tracking rallies in oil prices and commodity currencies, and making the palm-priced feedstock more expensive for overseas buyers. – Reuters, February 4, 2015.

Offline vincent88

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Re: CPO Latest Updated News
« Reply #155 on: February 06, 2015, 10:40:48 PM »
Palm oil climbs most in 28 months on Indonesian biofuel subsidy

JAKARTA, Feb 5 — Palm oil advanced the most in 28 months on Indonesia’s plans to boost biodiesel subsidies which would expand palm demand in the world’s largest producer and consumer. The parliament’s energy commission and the government approved an increase to 4,000 rupiah (RM1.13) a litre from 1,500 rupiah. The move also needs to be passed by the budget committee in parliament, the directorate general for oil and gas at the Energy & Mineral Resources Ministry said yesterday. Palm oil, used in everything from fuel and candy to instant noodles, slumped 10 per cent in the past year as a plunge in petroleum costs cut its appeal for biodiesel and soybean oil fell to a six-year low. The increase would mean positive margins for biodiesel producers, according to Alvin Tai, an analyst at RHB Investment Bank Bhd. “This law, if passed, would be a positive catalyst for palm oil prices,” Tai said in a report today. “This would help provide a boost to CPO demand assuming the B10 mandate is fully implemented,” he said, referring to crude palm oil and the biodiesel programme. Futures climbed as much as 4.9 per cent to RM2,307 a metric ton on the Bursa Malaysia Derivatives today, the biggest intraday advance since October 2012, before trading at RM2,289 by 5:20pm local time. Indonesia’s biodiesel mandate is feasible with the increased subsidy, said Hariyanto Wijaya, a Jakarta-based analyst at PT Mandiri Sekuritas. It will boost palm demand for biodiesel to 1.7 million tons this year from 800,000 tons in 2014, he wrote in a report today. Palm premium A further decline in petroleum costs would reduce the impact of the higher flat-rate subsidy, RHB’s Tai said. Palm oil’s premium over gas oil has expanded to US$118 a ton from a discount of US$259 in August. Brent crude lost 48 per cent in 2014 and has extended the decline by 5.1 per cent this year. Higher use in biodiesel could boost crude palm consumption in Indonesia by 1.5 million tons in 2015, said Ivy Ng, an analyst at CIMB Investment Bank Bhd. The move may spur PT Pertamina, the biggest fuel distributor, to hold more tenders to buy biodiesel, she said in a report. “Hopefully yes,” Ahmad Bambang, the marketing director, said by text message, when asked whether a 4,000 rupiah subsidy would encourage the company to hold tenders. The country’s target for biodiesel production is 2015 is 3.4 million kilolitres, said Dadan Kusdiana, director of bioenergy at the Energy & Mineral Resources Ministry. Output last year was 1.7 million kilolitres, half the 3.4 million goal, he said in a text message. — Bloomberg

Offline vincent88

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Re: CPO Latest Updated News
« Reply #156 on: February 10, 2015, 10:44:35 PM »
Malaysia Feb. 1-10 Palm Oil Exports 298,910 Tons(-16% mom): Intertek

Offline vincent88

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Re: CPO Latest Updated News
« Reply #157 on: February 10, 2015, 10:58:21 PM »
Malaysian palm oil shipments tumble most in seven years

KUALA LUMPUR, Feb 10 — Palm oil exports in Malaysia, the world’s biggest producer after Indonesia, slumped the most in seven years in January as a plunge in energy prices and record global oilseed supply cut demand. Sales decreased 22 per cent to 1.18 million metric tons from a month earlier, the Malaysia Palm Oil Board said in Kuala Lumpur on Tuesday. That’s the biggest drop since January 2008 and the least shipped since February 2011, MPOB data show. The median estimate in a Bloomberg survey published February 6 was for a 15 per cent decline to 1.29 million tons. Imports fell 0.5 per cent to 89,908 tons, according to board data. Palm oil, used in food and fuel, lost 12 per cent in the past year as a plunge in petroleum costs reduced its allure as a biodiesel feedstock and global soybean crops headed for an all- time high. Soybean oil fell to a six-year low last month, increasing its attraction as an alternative. Demand may shift to soybean oil, DBS Bank Ltd wrote in a report dated January 27. “Exports disappointed significantly on the downside and that says to me that on the demand side people are struggling with paying palm oil prices at these levels,” Wayne Gordon, a Singapore-based commodities analyst at UBS Group AG, said by phone February 10. “There’s a bit of an arm wrestle with soyoil. Palm oil price has to decline to buy demand.” Futures fell 0.3 per cent to RM2,311 (US$646) a ton on Bursa Malaysia Derivatives by 4.11pm in Kuala Lumpur. Soybean oil fell to 29.32 cents a pound on January 29, the lowest since December 2008 and has narrowed it’s premium over palm to about US$54 a ton from an average of US$155 in the past five years. Export slump Data from surveyor Intertek show exports may decline further this month. Shipments dropped 16 per cent to 298,910 tons in the first 10 days of February from the same period a month earlier, the company said February 10. Rising US crude oil supplies contributed to a global glut that drove prices almost 50 per cent lower last year. That’s removed the biodiesel portion of demand for palm oil, said Gnanasekar Thiagarajan, head of trading at Kaleesuwari Intercontinental Singapore Pte. Production tumbled 15 per cent to 1.16 million tons, the lowest level since February 2011, and reserves fell 12 per cent to 1.77 million tons, palm oil board data show. That compares with estimates of 1.2 million tons for production and 1.75 million tons for stockpiles in the Bloomberg survey. Output contracted for the fifth straight month as floods from late December through early January combined with the impact of dry weather in early 2014 to worsen the usual drop in production at this time of year, according to Michael Greenall, an analyst at BNP Paribas SA in Kuala Lumpur. Output is typically lowest in January and February each year. Monsoon floods The year-end monsoon that hit the east coast of Peninsular Malaysia resulted in the worst floods since 1972, according to Maybank Investment Bank Bhd While some damage from the floods may be seen for another two to three months, production will soon start its up cycle, said Gordon. Concerns over production are short-term as Indonesian output may accelerate, he said. Indonesia may produce 33 million tons in 2014-2015, according to a unit of the US Department of Agriculture. Output in the previous season was 30.5 million tons, the Foreign Agricultural Service said in a report dated January 28. “Stocks will start to build, particularly if we don’t see some recovery on the demand side,” said Gordon. “I’d be a seller of palm oil at these levels.” — Bloomberg

Offline vincent88

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Re: CPO Latest Updated News
« Reply #158 on: February 10, 2015, 11:06:33 PM »
New Formula to Set Biodiesel Price in Indonesia to Strengthen Biofuel Industry

Although the Indonesian government has already announced that biodiesel subsidies have been raised to IDR 4,000 per liter (from IDR 1,500 per liter in 2014) and bioethanol to IDR 3,000 per liter (from IDR 2,000 last year) - in a move to protect the domestic biofuel industry as production costs exceed market prices amid the low global palm oil prices -, Indonesian biodiesel producers are eager to see the country’s biodiesel price is set based on a different benchmark than the Mean of Platts Singapore (MoPS).

Over the past four months the benchmark MoPS has been below USD $450 per ton, implying that Indonesian biodiesel producers have to absorb losses as palm oil prices are currently near USD $650 per ton. Association of Indonesian Biodiesel Producers (Aprobi) official Paulus Tjakrawan estimates that the losses that are incurred by Indonesian biodiesel producers (due to the low MoPS price) is about USD $900,000 per day. As a result, several biodiesel producers have lowered or stopped altogether their biodiesel supplies to state-owned energy company Pertamina. Good news is that the parliament’s Commission VII overseeing energy affairs last week agreed to implement a new formula for the formulation of the biodiesel price. This new benchmark will not be based on the MoPS but on current crude palm oil (CPO) prices. The formula will also include biofuel production costs (estimated at about USD $188 per day) as well as a three percent margin. Aprobi is convinced that one of the keys to foster a successful domestic biodiesel industry is this new benchmark price.

New formula: CPO + USD$ 188/ton) x 870 kg/m3.

The government’s mandatory biodiesel program (known as B10) was introduced in August 2013 when the mandatory content of fatty acid methyl ester (derived from palm oil) in biodiesel was raised from 7.5 percent to 10 percent. This new regulation was designed to limit costly oil imports (for domestic fuel use) which cause a wide trade and current account deficit. The mandatory content in biodiesel will be raised to 15 percent (B15) in September 2015, and to 20 percent (B20) in January 2016. However, the ambitious program has been plagued by several obstacles such as logistical and infrastructure hurdles, as well as recent sharply falling crude oil prices making biofuels a less attractive alternative. Aprobi also hopes that when the government implements the new benchmark biodiesel formula, Pertamina (the distributor of biodiesel in Indonesia) will follow this new benchmark as well, and not only for new tenders but also for contracts that were signed during the first two years of the program (2013-2014).

In 2014, Indonesia consumed a total of 1.7 million tons of biodiesel, far from the government target of 3.5 million tons. A problem was that Pertamina was late in opening tenders due to disagreement regarding the price. Meanwhile, exports of biodiesel are expected to decline to 1.4 million tons in 2015 (from 1.6 million tons in the preceding year) due to diminished demand from the Eurozone. However, Indonesia is eager to tap new markets for its biodiesel in China, India, Australia and the USA.

The government’s new biodiesel policy (higher subsidies and the implementation of the new formula) have boosted palm oil futures due to expected higher palm oil demand in Indonesia, the world’s largest palm oil producer. On the Indonesia Stock Exchange, listed palm oil producers saw their shares soar on Friday (06/02). On Monday (09/02), however, these shares declined due to investors’ appetite for profit taking. Still, these palm oil companies are expected to see stronger shares this week.


Offline vincent88

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Re: CPO Latest Updated News
« Reply #159 on: February 10, 2015, 11:22:41 PM »
MPOB JAN Data                                         
                                              DECEMBER(r)       JANUARY(p)           DIFFERENCE      QUANTITY (%)
PRODUCTION (Tonnes)                 1,364,864           1,160,687              (204,177)            (14.96)           
INVENTORY  (Tonnes)                   2,015,789           1,770,299              (245,490)            (12.18)
EXPORT (Tonnes)                         1,519,622           1,184,284               (335,338)           (22.07)

Offline vincent88

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Re: CPO Latest Updated News
« Reply #160 on: February 13, 2015, 11:11:23 PM »
Malaysia’s CPO tax resumes in March

KUALA LUMPUR, Feb 12:

Malaysia will resume taxing exports of crude palm oil in March, a minister said today, after scrapping the duty for five months in a bid to spur demand and reduce bloated stockpiles.

“After studying various scenarios … the government has decided that the export tax regime will continue from March,” said Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas.

Uggah said the tax rate would depend on palm oil prices, adding that the government would announce details on the tax policy on Feb 16.

Malaysia, the world’s second-largest producer of crude palm oil (CPO) after Indonesia, exempted CPO exports from taxes from October to December, later extending the policy to the end of February.

Increased supply and slack global demand have pressured palm oil prices which dropped 15% last year.





The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was little changed at RM2,283 per tonne by the midday break today, well above a six-week low of RM2,106 hit in January.

Malaysia usually calculates its crude palm oil tax with average monthly prices provided by the industry regulator, the Malaysian Palm Oil Board, where a monthly average above RM2,250 will trigger tax rates that start from 4.5%. But the government makes the final decision.

Uggah said combined crude palm oil output from Malaysia and Indonesia is expected to rise to 51.1 million tonnes in 2015 from 49.2 million tonnes last year.

Uggah said the decline in palm oil prices was also due to higher production of competing vegetable oils, including soybean oil.

“It is important for the palm oil industry to assess this scenario and explore measures that would contribute towards strengthening CPO prices as well as increasing exports of Malaysian palm oil.”

Offline vincent88

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Re: CPO Latest Updated News
« Reply #161 on: February 20, 2015, 02:35:25 PM »
*MALAYSIA'S FEB. 1-15 PALM OIL EXPORTS 510,832 TONS (-6.3% mom): SGS

Malaysia’s Feb. 1-15 Palm Oil Exports 508,955 Tons(-5% mom): Intertek

Offline vincent88

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Re: CPO Latest Updated News
« Reply #162 on: February 20, 2015, 02:38:08 PM »
Malaysia surprises by keeping crude palm oil exports tax free


* Step is surprise after minister had said taxes would resume

* Move likely to support prices

* Rate has been scrapped since October (Adds detail, background)

KUALA LUMPUR, Feb 16 (Reuters) - Malaysia has kept tax on exports of crude palm oil at zero for March, a government circular showed on Monday, extending a duty-free policy held since October.

The move, which is likely to underpin prices, comes as a surprise as Malaysia's plantation industries and commodities minister said last week the country was planning to resume taxing exports from March.

The rate was scrapped from October to December, and later extended to end-February.

Malaysia, the world's second largest palm oil producer after Indonesia, calculated a reference price of 2,232.88 ringgit ($627) per tonne for March crude palm oil, effectively incurring an export duty of zero percent.

Increased global edible oil supplies and slowing demand have pressured palm oil prices which dropped 15 percent last year.

Authorities in Indonesia and Malaysian, which account for 85 percent of global palm oil production, are giving financial incentives in a bid to boost demand and support prices of the tropical product.

Indonesia has approved a threefold increase in biodiesel subsidies which is likely to take effect next month. ($1 = 3.5620 ringgit) (Reporting by Al-Zaquan Amer Hamzah and Anuradha Raghu; Writing by Naveen Thukral; Editing by Joseph Radford)

Offline vincent88

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Re: CPO Latest Updated News
« Reply #163 on: February 23, 2015, 11:57:03 PM »
Palm Oil Update Indonesia: CPO Export & Prices Weaker in January 2015

Indonesian crude palm oil (CPO) exports rose about 15 percent year-on-year (y/y) to 1.8 million tons in January 2015 from the same month last year. However, on a month-on-month (m/m) basis Indonesian CPO exports fell 8 percent in the first month of 2015. Fadhil Hasan, Executive Director at the Indonesian Palm Oil Producers Association (Gapki), said that CPO exports from Southeast Asia’s largest economy declined in January as demand from nearly all main CPO export markets, particularly China and India, fell at the year-start.

Other factors that contributed to Indonesia’s declining crude palm oil exports in January 2015 were large global stockpiles of edible oils (partly caused by worldwide low edible oil demand which has weakened to its lowest level since October 2009), low global oil prices, and fewer supplies of CPO to the biodiesel market. Recent floods in main CPO producing regions in Malaysia were unable to lift CPO prices. Hasan said that the average CPO price in January was USD $669.6 per metric ton (down 1 percent from the price in the preceding month). Indonesia’s benchmark CPO price for February 2015 (which is set by Indonesia’s Trade Ministry and is used to calculate the country’s CPO export tax) is USD $648 per metric ton. The Indonesian government sets a CPO export tax when this benchmark price (calculated using international and local CPO prices) exceeds USD $750 per metric ton (if the price falls below USD $750 per metric ton then a zero percent tariff is set). However, the government recently indicated that it may lower the USD $750 per metric ton threshold as palm oil prices have been below USD $750 per metric ton for four months implying that the government has not been able to collect any export tax income from this sector.

According to data from Gapki, exports of Indonesian CPO (and its derivatives) to China, the world’s second-largest economy, plunged 40 percent (m/m) to 196.8 thousand tons in January. Meanwhile, exports to India, the world’s largest CPO importer, fell 37.7 percent to 298.3 thousand tons. Slowing demand in these two vital CPO importing countries leads to pressures on CPO prices. Furthermore, Indonesian CPO exports to the USA fell 15 percent (m/m), to African countries by a total of 8 percent (m/m) and to the Eurozone by 3.6 percent (m/m). On the other hand, Indonesian CPO exports to Pakistan surged 59 percent (m/m) to 125.6 thousand tons in January 2015, while CPO exports to the Middle East rose about 9 percent (m/m) to 190.2 thousand tons.

Contrary to initial expectation, Indonesia’s recent decision to triple biodiesel subsidies to IDR 4,000 per liter (a move to support the country’s biodiesel companies as biodiesel prices are higher than diesel prices) is not expected to boost CPO demand significantly due to the large drop in crude oil prices since June 2014. Indonesia, the world’s largest palm oil producer, introduced an ambitious mandatory palm oil-based biodiesel program (known as B10) in 2013 in an effort to curb the country’s trade and current account deficits (primarily caused by costly oil imports). However, low crude oil prices in combination with logistical and infrastructure issues hinders full implementation of the program.

Indonesian Palm Oil Production and Export:
 

                              2008   2009   2010   2011   2012   2013   2014¹   2015¹
Production
(million metric tons)   19.2   19.4   21.8   23.5   26.5    27.0    31.0    32.5
Export
(million metric tons)   15.1   17.1   17.1   17.6   18.2    21.2    20.0    22.3
Export
(in USD billion)

Offline vincent88

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Re: CPO Latest Updated News
« Reply #164 on: February 25, 2015, 10:31:43 PM »
Malaysia Feb. 1-25 Palm Oil Exports 815,763 Tons(-7.1% mom), SGS Reports

Malaysia’s Feb. 1-25 Palm Oil Exports 827,273 Tons(-6.6% mom): Intert

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Re: CPO Latest Updated News
« Reply #165 on: March 02, 2015, 08:00:59 PM »
MALAYSIA'S FEB. PALM OIL EXPORTS 953,053 (-14.5%) TONS: INTERTEK

*MALAYSIA'S FEB. PALM OIL EXPORTS 993,376 TONS (-10.4% mom): SGS

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Re: CPO Latest Updated News
« Reply #166 on: March 04, 2015, 12:49:55 AM »
Expert expects lower not higher palm oil output this year

KUALA LUMPUR, March 3 — Palm oil output forecasts that show the Malaysian harvest expanding to a record are too optimistic, according to Dorab Mistry, who signalled that investors should focus on supply as two low cycles coincide. “Production in Malaysia in 2015 will not exceed 2014,” the director at Godrej International Ltd said in an e-mail on Feb 17, reiterating comments he made in November. “This is and was contrary to the consensus view on production. I believe the market will wake up after March 4,” wrote Mistry, who’s scheduled to present his price outlook at a palm and lauric oils conference in Kuala Lumpur tomorrow. While palm oil declined in the past year as a plunge in energy prices cut the allure of biofuels and global oilseed crops surged, lower-than-expected output from the top producers may support prices in 2015. Supply growth from Indonesia, which more than doubled its subsidy for palm-based biofuels last month, will slow this year, according to Derom Bangun, chairman of the Indonesian Palm Oil Board. Indonesia and Malaysia account for more than 80 percent of world supplies. “The market is focusing on the decline in crude oil prices and the Indonesian biodiesel mandate,” wrote Mistry, who’s traded palm for more than three decades. “To my mind, the story for 2015 will be production.” Futures, which fell 16 per cent in the past 12 months as crude oil slumped, traded 0.3 per cent lower at RM2,365 a metric ton on Bursa Malaysia Derivatives at 10.50am in Kuala Lumpur. Prices surged the most since 2010 on Feb 5 after Indonesia announced the increase in biodiesel subsidies, and are 4.4 per cent higher in 2015. Big impact The seasonal lean period, which typically occurs at the start of the year, will run concurrently with a biological low cycle from November to June, Mistry wrote in the Feb 17 e-mail. The impact on output can be considerable when the two come together, he said in November. A drop in production may help reduce stockpiles. Reserves in Malaysia contracted 12 per cent to 1.77 million tons in January, the lowest level since July, even as exports slumped, according to data from the country’s palm board. Mistry’s outlook for supply contrasts with the Palm Oil Board and the US Department of Agriculture, both of which forecast a record crop. Output may rise to a record 20.09 million tons in 2015 from 19.67 million tons last year, the Palm Oil Board says. Production may gain 1.7 per cent to 20.5 million tons in the 2014-2015 year, the USDA estimates. The last time Malaysia posted a drop in annual output was 2012. Biodiesel programme In November, Mistry told a meeting in Bandung, Indonesia that he expected no change in the size of Malaysia’s harvest this year, while saying the direction of prices would depend on the biodiesel programme in Indonesia. In October, Mistry put Malaysian 2014 supply at 19.6 million tons to 19.8 million tons. Sime Darby Bhd, the world’s biggest-listed producer, said Feb 26 that Malaysian palm output may drop one per cent in 2015. The decline would be spurred by the lagged impact of dry weather early last year and replanting of trees, the executive vice-president of plantations, Franki Anthony Dass, told reporters. “We expect production to slow down in the first half of 2015 as yield cycle is likely to turn negative in both Malaysia and Indonesia,” Vasanth Subramanian, senior vice-president of palm at Olam International Ltd, said in an e-mail in response to questions. “We also expect some impact on production from droughts last year both in Malaysia and Indonesia. However, production should start to grow again from May 2015.” Indonesian output will be 31 million tons in 2015 from 29.5 million last year due to slower expansion, Bangun, chairman of the palm board, said in an interview on Feb. 18. That’s below the 33 million seen by Joko Supriyono of the Indonesian Palm Oil Association. The USDA also predicts 33 million. “The world needs about 160 million tons of fats and oils supply per year, with demand growing four million to five million tons annually,” Bangun said. “Now I see Indonesia is slowing too, so fundamentally there could be a shortfall in supply.” — Bloomberg

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Re: CPO Latest Updated News
« Reply #167 on: March 09, 2015, 11:01:11 PM »
Biodiesel programme to maintain palm oil's long-term prognosis

Kuala Lumpur: Although the price outlook for palm oil in the medium term looks mixed, a policy switch to boost the biodiesel programme will very much maintain its long-term prognosis.

The successful implementation of the biodiesel programme in palm oil producing countries would offset the high inventory, subsequently firming up prices.

In this regard, the Plantation Industries and Commodities Ministry has indicated the country's commitment in implementing the B10 Programme in other sectors, such as industry and power generation, allowing domestic annual palm oil consumption to reach 1.2 million tonnes.

The programme involves the blending of 10 per cent palm methyl ester with 90 per cent fossil fuel diesel.

Speakers at the three-day Palm and Lauric Oils Conference and Exhibition (POC) 2015, which ended on March 4, suggested that crude palm oil (CPO) price would firm up to an average of RM2,260 a tonne for the first half due to lower production.

The decline in production was attributed to the recent floods, but as local planters start to recover, it could rise well above 2.5 million tonnes in the fourth quarter.

The anticipated stronger production, coupled with the slump in Brent crude oil, would weigh down on CPO price, pushing it down to an average of RM1,770 a tonne for the second half of this year.

The third month May futures contract on Bursa Malaysia Derivatives ended at RM2,288 per tonne on Friday while on the physical front, it stood at RM2,350 per tonne.

LMC International Ltd Chairman James Fry expects Brent to remain under pressure due to the expected increase in US interest rates, and average at US$60 per barrel this year.

However, Gavin Maguire, Editor-in-Charge, Commodities and Energy, Asia at Thomson Reuters said the low price might work as a competitive advantage for palm oil against its rivals such as soy, rapeseed and sunflower seed oils.

"Palm oil used to be the cheapest guy in town, so it should continue to be that to continue to win more business," he added.

The conference, themed "Trade, Hedge and Be Ahead of the Markets" and organised by Bursa Malaysia, saw close to 2,000 attendees from 67 countries representing the entire value chain including plantation holders, manufacturers, fund managers, traders, financiers, derivatives participants, and logistics and infrastructure providers. – Bernama

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Re: CPO Latest Updated News
« Reply #168 on: March 10, 2015, 11:15:37 PM »
(BFW) Malaysia's March 1-10 Palm Oil Exports 247,698 Tons (-19.3% mom): SGS

(BFW) Malaysia's March 1-10 Palm Oil Exports 262,168 (-12.3%) Tons: Intertek

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Re: CPO Latest Updated News
« Reply #169 on: March 10, 2015, 11:18:47 PM »
*MPOB SAYS MALAYSIA FEB. PALM OIL EXPORTS 0.97M TONS
*MPOB SAYS MALAYSIA FEB. PALM OIL STOCKS 1.74M TONS
*MPOB SAYS MALAYSIA FEB. PALM OIL OUTPUT 1.12M TONS


By Ranjeetha Pakiam

      (Bloomberg) -- Palm oil stockpiles in Malaysia, world’s second-largest producer, fell 1.5% to 1.74m metric tons in Feb. from month earlier, Malaysian Palm Oil Board says in e-mailed statement on Tuesday.

• Output declined 3.4% to 1.12m tons, while exports dropped 18% to 971,640 tons

• NOTE: Est. according to Bloomberg survey showed inventories at 1.67m tons, output at 1.14m tons and shipments at 1.08m tons



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Re: CPO Latest Updated News
« Reply #170 on: March 10, 2015, 11:22:09 PM »
Malaysian palm stocks at 7-month low, February exports weakest since 2007

Malaysian palm oil stocks sank to a seven-month low at February-end as floods in Borneo and less working days due to the Lunar New Year break cut output levels, but the drop was smaller than expected as overseas sales hit their weakest since 2007

While lower stockpiles in Malaysia, the world's No.2 palm oil producer after Indonesia, could support benchmark prices of the tropical oil, a bleak export demand outlook amid ample supplies of rival soyoil means gains will be capped. "Everything is not exactly dandy on the export front," said Lingam Supramaniam, director at Malaysia-based commodities firm Pelindung Bestari. "We anticipate lots of competition from Indonesia and South America as we move forward."

Data released by the Malaysian Palm Oil Board (MPOB) on Tuesday showed inventories fell 1.5% from a month ago to 1.74 million tonnes, their smallest since July. A Reuters poll had pegged stockpiles to fall 3% to an eight-month low of 1.67 million tonnes. Malaysia's crude palm oil production fell 3.4% to 1.12 million tonnes, their weakest since February 2011, just slightly more than estimates of 1.13 million tonnes. Poor export demand, however, prevented a steeper drop in stocks.

The MPOB said shipments of Malaysian palm oil tumbled 18.4% to 971,640 tonnes. The last time Malaysian exports were this weak was in July 2007 when only 947,697 tonnes were shipped, according to Reuters data. Cargo surveyor Intertek Testing Services data released earlier showed that Malaysian palm oil exports fell 12.3% between March 1-10 from the corresponding period last month, as Europe and China slashed imports of the tropical oil. Ahead of the MPOB report, the benchmark May contract on the Bursa Malaysia Derivatives Exchange fell 0.6% to RM2,257 (US$611) a tonne, down for a fifth day.

Leading vegetable oil analysts at a palm conference last week said they expect palm prices to rise in the near term on tighter supplies at top growers Indonesia and Malaysia, but painted a gloomy outlook for the second half citing a robust recovery in output and lacklustre demand. "Albeit trying to clutch the straw of optimism from the end-stocks, production will gain traction in the coming months and prices will certainly re-test fresh lows, before it turns better," said Lingam in Kuala Lumpur. – Reuters, March 10, 2015.

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Re: CPO Latest Updated News
« Reply #171 on: March 16, 2015, 07:30:33 PM »
Palm hits lowest in nearly 6 weeks on Malaysia's export tax decision

[KUALA LUMPUR] Malaysian palm oil futures slid to their lowest in nearly six weeks on Monday, after a decision by the second-largest producer to impose export taxes next month fuelled worries that price-sensitive buyers would switch to rival edible oils.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange tumbled as much as to RM2,172 (S$815) a tonne in early trade, its lowest since Feb. 4, before ending the session at RM2,199, down 1.7 per cent.

Malaysia, the world's No 2 supplier of palm oil, said on Monday it would raise export duties for the crude grade to 4.5 per cent for April, ending a duty-free policy held since September.

The decision made market participants jittery that the additional tax could further curb demand for the tropical oil.

"With the imposition of the export tax, market direction is looking a little murky," said Lingam Supramaniam, director at Malaysia-based commodities firm Pelindung Bestari.

"Market continues to reel from demand concerns ... the huge US carryout and South American output will put downward pressure on palm prices."

Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for the first half of March fell 3.4 per cent compared to Feb 1-15, as India and Europe cut back purchases.

Another cargo surveyor Societe Generale de Surveillance showed exports for the same period fell 5.2 per cent.

Total traded volume on Monday stood at 50,354 lots of 25 tonnes, much higher than the usual 35,000 lots.

Analysts said palm prices, however, may draw support from a decision by Indonesia to raise its biodiesel blend to 15 per cent from 10 per cent as early as next week, aimed at boosting use of palm-based biodiesel.

"We estimate that a 15 per cent blend could potentially raise Indonesia's biodiesel consumption to 5.5 million kilolitres per annum, from 1.8 million kilolitres in 2014," CIMB analyst Ivy Ng said in a note on Monday.

The top producer may also introduce tax breaks for crude palm oil producers to support the mandate, energy ministry officials said on Monday.

Elsewhere, Brent crude oil fell to around US$54 a barrel on Monday, its lowest for more than a month, on rising global inventories and signs of a possible nuclear deal with Tehran that could allow more Iranian oil exports.

In vegetable oil markets, the most active September soybean oil contract on the Dalian Commodity Exchange lost 1.5 per cent in late Asian trade, while the US soyoil contract for May was down 0.3 per cent.

REUTERS

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Re: CPO Latest Updated News
« Reply #172 on: March 22, 2015, 04:26:50 PM »
Malaysia's March 1-20 Palm Oil Exports 652,837 Tons: SGS

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Re: CPO Latest Updated News
« Reply #173 on: March 22, 2015, 04:28:40 PM »
Indonesia plans levy on crude palm exports instead of tax threshold cut

Indonesia will impose a levy of US$50 (RM186) a tonne on exports of crude palm oil when prices fall below a threshold triggering a monthly tax on shipments overseas, the chief economics minister said.

When prices of crude palm oil fall below the threshold of US$750 a tonne on average, the world's top producer of the tropical oil cuts the monthly tax on its CPO exports to zero. Benchmark Malaysian palm oil futures have fallen more than a fifth over the last year, and ended yesterday at RM2,160 per tonne.Southeast Asia's biggest economy set its crude palm oil export tax for March at zero, unchanged since October last year. Indonesian officials are preparing new rules for a charge of US$50 on every tonne of CPO shipped at the zero export tax rate, Sofyan Djalil said, with the funds going to help pay for biodiesel subsidies announced in recent weeks. "At any (CPO) price we will take US$50 a tonne," he said, making clear that when the CPO export tax kicked in, the government would allocate US$50 a tonne to its biodiesel fund from the revenue earned.

The measure will go to Indonesian President Joko Widodo for approval on his March 30 return from overseas trips. Indonesia ramped up biodiesel subsidies last month, in a bid to protect its biofuels industry against lower prices of crude and cut costly imports of diesel. But a subsequent decision to boost the minimum bio content in diesel fuel to 15% from 10% increased the amount of funds needed to pay the subsidies for the higher volumes of biodiesel. To secure processing supplies, Djalil said the government may also require CPO producers to allocate 15% of total output for domestic use, but gave no further details. A major industry group this week said the government was looking to lower the threshold for the monthly export tax, to between US$500 and US$600 a tonne. The CPO export tax, aimed to help processing industries and secure domestic supplies, rises to a maximum of 22.5%, depending on how far above US$750 average prices climb. Before the recent changes, Indonesia's CPO production was seen rising 7% to 31.5 million tonnes, with exports falling 500,000 tonnes to 19.5 million, industry estimates show. Major palm oil firms operating in Indonesia include PT Sinar Mas Agro Resources and Technology, Malaysia's Sime Darby and Singapore-based Wilmar International Ltd. – Reuters, March 21, 2015.

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Re: CPO Latest Updated News
« Reply #174 on: March 25, 2015, 10:07:39 PM »
Malaysia's March 1-25 Palm Oil Exports 856,474 (+3.5%) Tons: Intertek

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Re: CPO Latest Updated News
« Reply #175 on: March 31, 2015, 09:39:14 PM »
SURVEYORS EXPORT REPORT

Surveyor     1-31/Mar           1-28/Feb        Difference/MT          Difference/%
SGS             1,156,947           953,053           203,894                   21.39
ITS              1,140,355           993,376           146,979                    14.8

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Re: CPO Latest Updated News
« Reply #176 on: April 01, 2015, 11:10:57 PM »
VEGOILS-Palm falls; Indonesia, Malaysia tax policies in focus

* Indonesia sets CPO export tax for April at zero
 
    * Palm oil to fall to 2,146 ringgit -technicals
 
    * Malaysian GST seen weakening April exports, prices

 (Updates throughout)
    By Fergus Jensen
    JAKARTA, March 31 (Reuters) - Malaysian palm oil futures edged down on Tuesday as traders took profits after a rally the day before and after Indonesia kept its palm oil export tax at zero for April.
    By Tuesday's close the benchmark June contract on Bursa Malaysia Derivatives was down 1.19 percent at 2,165 ringgit ($585) a tonne. Total traded volume stood at 35,441 lots of 25 tonnes, just above the daily average of 35,000 lotstraded.
    Exports of Malaysian palm oil products in March rose 21.4 percent to 1.16 million tonnes from 953,053 tonnes shipped in February, cargo surveyor Intertek Testing Services (ITS) said on Tuesday.
    According to cargo surveyor Societe Generale de Surveillance, Malaysian palm oil exports over the same period rose 14.8 percent to 1,140,355 tonnes from 993,376 tonnes shipped during February. 
    "Normally traders buy on rumours and sell on facts," said a trader with foreign commodities brokerage, noting that the increase in Malaysian palm oil exports had earlier been factored into prices and that traders were concerned about Indonesia's export tax remaining at zero.
    The market is also focusing on Malaysia's plans to implement a goods and services tax that is seen affecting shipments and sales of the edible oil in April.
    "A lot of the plantations are pushing their products out this month. When it comes to April our exports are expected to be weak," the trader said. "The GST will have a huge impact on our whole economy."
    While palm oil itself is exempt from the GST, exporters and traders will need to apply for tax refunds from customs, potentially reducing their operations' liquidity, he said.
    "From crude to the refinery they can claim back, but the process and duration for claims is unknown."
    Golden Agri-Resources Ltd, the world's second biggest oil palm planter by acreage, expects its palm and palm kernel oil production to rise around 5 percent this year, coming in at the lower end of a projected annual growth rate as dry weather hurts yields, potentially providing some price support.
 
   
    In other vegetable oils, the U.S. soyoil May contract
slipped 0.56 percent during late Asian trading, while the most
active September soybean oil contract on the Dalian
Commodity Exchange lost 0.74 percent.
    Brent crude oil dropped towards $55 a barrel on Tuesday as
Iran and six world powers entered a final day of talks over a
nuclear deal that could see the energy-rich country increase oil
exports to world markets.

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Re: CPO Latest Updated News
« Reply #177 on: April 06, 2015, 11:16:31 PM »
Palm oil hits 2-week high after Jakarta’s export levy

KUALA LUMPUR, April 6 — Palm oil advanced to the highest level in more than two weeks after Indonesia, the world’s biggest producer, said it will impose export levies to fund biodiesel subsidies as well as replanting, research and development. Shippers will pay a levy of US$50 (RM181) a metric ton for palm oil and US$30 for processed products starting this month, Sofyan Djalil, coordinating minister for economic affairs, said April 4. The government will keep the threshold for application of a separate export tax at US$750 a ton, Djalil said. Palm, used in everything from fuel and candy to instant noodles, slumped 16 per cent in the past year as a plunge in petroleum costs cut its appeal for biodiesel and soybean oil fell to a six-year low. Indonesian prices may drop by about the amount of the levy, according to Wayne Gordon, an analyst at UBS Group AG in Singapore. That would be negative for producers, while refiners may benefit as utilisation rates in biodiesel will rise and margins improve, he said. “In the near term, upstream have a headwind from the tax, downstream get a tailwind,” Gordon said by phone. “The longer term is that if they can get the biodiesel sector sorted out in Indonesia, this is a net positive for the whole sector.” Futures climbed as much as 0.9 per cent to RM2,211 a ton on the Bursa Malaysia Derivatives today, the highest level since March 20, before trading at RM2,207 by the end of the morning session in Kuala Lumpur. Biofuel demand Indonesia has promoted biofuel use to help absorb rising supplies of the world’s most-traded cooking oil and to cut carbon emissions. The country boosted the mandated amount of palm blending in diesel to 10 per cent from 7.5 per cent in 2013, and ordered power plants to mix 20 per cent in 2014.

The biodiesel subsidy was raised in February to 4,000 rupiah (RM1.12) a liter from 1,500 rupiah and the mandated blending for diesel will increase to 15 per cent in April. The country may consume 10 million tons of palm oil in 2015 with about half being used for biodiesel, Trade Minister Rachmat Gobel said today. Palm oil production in Malaysia, the world’s second-biggest grower, probably climbed for the first time in seven months in March, according to a Bloomberg survey. Output is typically lowest in January and February each year. “Seasonal production is starting to accelerate,” said Gordon, who expects significant increases in demand from Indonesia’s biodiesel sector may take 18 months to two years. “So I can’t see how that’s a really bullish story for palm prices more generally,” he said. Expectations for a further decline in crude oil prices and a stronger ringgit could cap gains, Gordon said. Palm’s premium over gas oil has expanded to US$87.72 a ton on April 6 from a discount of about US$259 in August, according to data compiled by Bloomberg. Brent crude declined by 3.1 per cent this year after plunging 48 per cent in 2014. Malaysia’s ringgit strengthened 1.2 per cent against the dollar today, data compiled by Bloomberg show.

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Re: CPO Latest Updated News
« Reply #178 on: April 09, 2015, 10:00:43 PM »
Malaysia’s March palm stocks seen up, first gain in four months

KUALA LUMPUR: Malaysia’s palm oil stocks likely rose for the first time in four months in March as higher output in the world’s second-largest producer of the tropical oil offset export demand, a Reuters poll showed.

Rising supplies of palm, coming at a time when the market is bracing for record harvests of rival oilseeds, will dent prices of the tropical oil that fell more than six per cent in March – their worst monthly showing since August last year.

A median forecast by six planters, traders and analysts show Malaysia’s crude palm oil (CPO) production probably rose 17.7 per cent from a month ago to 1.32 million tonnes in March, the first such rise since August last year.

In February this year, output hit its weakest since early 2011, data from the Malaysian Palm Oil Board showed.

Industry players expect production to pick up pace as yields in the top-producing Borneo region recover.

“In February, it was Peninsular Malaysia’s output that picked up a lot, not Sabah,” said Phang Loy Fatt, an official with the marketing division of Malaysian planter Kuala Lumpur Kepong Bhd.

“When you come to March, both sides will increase.”

The Borneo states of Sabah and Sarawak supplied almost half of Malaysia’s total palm in 2014.

Malaysian palm oil exports are forecast at 1.15 million tonnes in March, up 18.3 percent from February when shipments tumbled to an eight-year low.

But analysts said this was not an indication of real demand as sales were driven by a rush to book CPO shipments ahead of a revival of Malaysian export duties from April that ends a duty-free policy held since September.

“The monthly exports of palm oil staged a good pick-up month-on-month due potentially to the rush by producers to export CPO ahead of the 4.5 per cent export tax to be imposed on April 1,” CIMB analyst Ivy Ng said.

Malaysian end-March palm oil stocks were pegged at 1.75 million tonnes, up 0.2 percent from February, the first monthly rise since November 2014.

Respondents’ forecasts ranged for March stocks to drop by two per cent to climb by more than 10 per cent.

The median figures from the survey imply domestic consumption of 239,032 tonnes in March.

The market is now keeping an eye on a proposal by top grower Indonesia to impose levies on exports of its crude and processed palm oil that could be approved this week.

Benchmark palm prices are currently at RM2,214 a tonne. — Reuters

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Re: CPO Latest Updated News
« Reply #179 on: April 12, 2015, 11:35:25 PM »
CPO futures to trade up to RM2,100 next week

Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are expected to trade lower next week, moving between RM2,000 and RM2,100 a tonne.

Interband Group of Companies senior palm oil trader Jim Teh said heavy CPO stocks and higher production would likely be the key factors driving the commodity prices. "The Malaysian Palm Oil Board's data for March released today shows that the stocks increased by 7.02 per cent to 1.87 million tonnes from 1.74 million tonnes in February.

"In terms of production, the CPO output rose 33.27 per cent to 1.49 million tonnes against 1.12 million tonnes previously following good weather conditions," he said. However, he said as the CPO exports improved by 21.52 per cent to 1.18 million tonnes last month from 972,646 tonnes in February, it would reduce inventories and help support the prices. "It's a win-win situation," he added. For the week just-ended, the futures market was traded between RM2,100 and RM2,300 a tonne, mainly influenced by the Chicago soybean market and the currency movement. On a Friday-to-Friday basis, April 2015 and May 2015 fell RM58 each toRM2,120 a tonne and RM2,138, respectively, while June 2015 depreciated RM63 to RM2,128 and July 2015 was RM59 lower at RM2,121. Weekly turnover rose to 235,413 lots from 147,734 lots last week while open interest widened to 225,293 contracts versus 188,415 contracts previously. On the physical market, April South down RM50 to RM2,160 a tonne from lastweek's RM2,210 per tonne.

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Re: CPO Latest Updated News
« Reply #180 on: April 14, 2015, 11:02:54 PM »
Palm Seen Sinking to Six-Year Low by Mistry as Output Swells

Palm oil, the world’s most used cooking oil, may slump to a six-year low in the second half as supplies expand and reserves accumulate in producing countries, according to Dorab Mistry, director at Godrej International Ltd.

Futures in Kuala Lumpur may retreat to 1,900 ringgit ($512) a metric ton, a level last seen in March 2009, Mistry said in remarks prepared for a conference in Beijing. Prices will trade between 2,100 and 2,300 ringgit until May, he said, abandoning a March forecast for a rally to 2,500 ringgit.

Palm oil, used in everything from fuel to instant noodles and candy, lost 19 percent in the past year as the collapse in petroleum costs cut the appeal of cooking oils as biofuel and as global supplies of soybeans climbed to a record. While output in Malaysia, the biggest grower after Indonesia, may continue to decline until June, a recovery in the second half will boost stockpiles and pressure prices, Mistry said.




“The problem for palm oil bulls is that we are likely to see a very good recovery in production in the second half of 2015,” Mistry, who has traded cooking oils for more than three decades, said in a speech prepared for delivery on Monday. “Also, the differential between prices of RBD olein and crude degummed soya oil has narrowed in favor of soya oil.”

Prices fell in three of the past four years as output expanded to the highest ever in Indonesia and Malaysia, which account for 86 percent of global supplies. Futures closed at 2,131 ringgit on Monday, down 6 percent this year. Soybean oil in Chicago slumped in January to the lowest since 2008, cutting the premium to palm to almost half the average in the past five years, data compiled by Bloomberg show.

Market Share

The premium of soybean oil over refined, bleached and deodorized palm olein needs to expand to $70 a ton from about $50 now to allow palm to regain market share and keep stockpiles in producing countries at reasonable levels, Mistry said. The decline in soybean oil prices spurred buyers from India to China and Iran to shift from palm oil, he said.

Palm oil fell as Indonesia failed to implement its biodiesel program, Mistry said. Prices may rally if state-owned PT Pertamina announces a tender to buy the vegetable oil to run the biodiesel mandate, he said. The rallies will be seen by investors as opportunities to sell, he said.

Indonesia will impose export levies to fund biodiesel subsidies, replanting, research and development, with shippers paying $50 a ton for crude palm and $30 for processed products starting this month, the government said April 4. The country also raised its biodiesel mandate to a 15 percent blend in April from 10 percent, likely boosting palm demand by 2 million tons this year, the Indonesian Palm Oil Association estimates.

‘Market Mood’

“The market is in no mood to take Indonesian promises at face value,” Mistry said. “I would sum up the mood of the market as -- Show Me the Money.”

Production in Malaysia, which lost 920,000 tons of output in the four months through February from a year earlier, will continue to decline until June due to the low biological cycle of trees and low seasonal cycle for harvest, he said. Production in Malaysia will total 19.7 million tons this year, while Indonesia’s output was seen at 31.5 million tons, he said.

Output in the three months through March declined 12 percent to 3.78 million tons from a year earlier, the Malaysian Palm Oil Board said April 10. Inventories rose 7 percent to 1.87 million tons in March from February, data show.

Mistry’s palm oil price forecast assumes Brent trading between $50 and $70 a barrel, a strong dollar and a normal U.S. soybean crop. Soybean prices may drop below $9 a bushel and may approach $8 if there’s a big U.S. harvest, he said.

“I must warn you that farmers will resist these prices and will be very reluctant sellers,” Mistry said. “So the journey downwards will be painfully slow and there will be many spot rallies.”

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Re: CPO Latest Updated News
« Reply #181 on: April 14, 2015, 11:09:24 PM »
Palm futures end higher with hopes of spike in local buying

There are hopes that levies imposed on Indonesian crude palm oil could drive buyers towards Malaysia.

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Re: CPO Latest Updated News
« Reply #182 on: April 19, 2015, 11:06:36 PM »
M'sia, Indonesia move to impose zero duties on CPO

Selangor: Malaysia and Indonesia, the world's two largest producers of crude palm oil (CPO), are now playing the game of zero duties on CPO exports in efforts to bring down the huge build-up in palm oil stocks amid current weak prices and the narrowing of the CPO price discount to soybean. Malaysia recently announced that it would revert to zero duties on CPO exports for May, after having recently reimposed a 4.5pc export duty on CPO for April.

Malaysia's CPO export duty regime had been suspended from September 2014 to March 2015.

Indonesia, meanwhile, had started to impose zero duties on its CPO exports since March. The world is sitting on some six million tonnes of palm oil stocks, said palm oil expert M R Chandran.

As at end-March, Indonesia's CPO stocks were pegged at about 2.1 million tonnes and Malaysia at 1.87 million tonnes, while top CPO importers China and India were holding some two million tonnes of CPO stocks.

"With palm oil production set to rise in the coming months, many also fear a huge build-up in palm oil stocks in the coming months," Chandran said.

For Malaysia, he said palm oil stocks for April were slated to breach the two million-tonne mark should the harvesting of crops improve.

This could further drag down the CPO price, which has fallen by about 19pc so far this year.

Another bearish factor is the narrowing of the CPO price discount to soybean at US$58-US$59 per tonne currently compared with the average price discount of US$180 per tonne in the past 10 years.

"The narrowing of the price discount makes it more attractive for the world's top edible oil importers, China and India, to purchase soybean rather than CPO," added Chandran.

On a positive note, he said the only factor that was holding the CPO price above RM2,000 per tonne currently was the weakening of the ringgit against the US dollar. The three-month benchmark CPO futures for June contract closed RM12 higher at RM2,160 per tonne.

Meanwhile, Kenanga Research in its latest report highlighted that Malaysia's CPO export duty could be zero percent for May.

The average CPO freight-on-board prices for the last 15 days of March together with the first 10 days of April was RM2,219 per tonne, which is below the RM2,250-per-tonne price threshold to implement CPO export taxes.

Under the domestic CPO export duty structure, the CPO exports will be taxed from 4.5pc onwards when the CPO gazetted price is higher than the RM2,250-per-tonne threshold price.

According to Kenanga Research, some CPO sellers could be holding back their CPO exports until then, as the export tax (at 0pc) could become attractive next month.

Hence, the research unit is expecting exports to improve by 6pc to 1.25 million tonnes in April due to re-stocking activities and Malaysia's tax advantage.

"We think that countries with colder climates such as China and Europe should see better demand going forward due to stock replenishment after the winter months." On the other hand, the CPO price weakness will likely persist.

Kenanga Research said CPO prices could continue to trade between the RM2,100 and RM2,200-per-tonne range in the near term, following expectations of higher inventory in April, declining soybean prices and low crude oil prices.

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Re: CPO Latest Updated News
« Reply #183 on: April 29, 2015, 10:50:07 PM »
Report predicts good news for palm oil prices

The worst may be over for palm oil prices, said the Performance Management and Delivery Unit (Pemandu) in its Economic Transformation Programme (ETP) Annual Report 2014 released today.

It said severe droughts registered in the first half of 2014 in the world's major palm oil producing countries Malaysia and Indonesia are expected to lower palm oil production in 2015. "This will lead to a mismatch between palm oil's availability and rising consumption of palm oil in the year ahead.

"As palm oil supply dips, demand is expected to rise, underpinned by an uptick in vegetable oil demand from China as well as Malaysia's move to lift biodiesel blends from 5% to 7% at the end of last year to boost consumption and shore up prices. Pemandu said Malaysia, which set export taxes on monthly basis for crude palm oil (CPO) shipments, allowed duty-free exports of CPO towards to end of the year, helped to reduce stockpiles of palm oil, which Indonesia followed shortly after. On rubber, Pemandu said demand was expected to be steady this year and will help underpin natural rubber prices over the coming year. It said from a supply perspective, the replanting efforts undertaken by governments in Malaysia and other rubber producing nations in the region will mean limited availability of supply and cushion prices. Pemandu said this year, the Entry Point Projects (EPP) has allocated a new budget of RM96.71 million for replanting and RM110.08 million for new planting nationwide.

"The budget is sufficient for a target of about 24,000 hectares of replanting and new planting," it said. It added more replanting exercises could also be expected following the government's RM100 million rubber productivity incentive to aid rubber smallholders suffering from weak commodity prices," it said. – Bernama, April 28, 2015.

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Re: CPO Latest Updated News
« Reply #184 on: April 29, 2015, 10:53:03 PM »
Palm oil suffers as ringgit gets stronger

KUALA LUMPUR, April 28, 2015:

Malaysian palm oil futures slid to an eight-month low today as the ringgit continued to gain traction, stoking worries that overseas buyers may shy away from palm at a time when the tropical plant enters a higher production cycle.

The Malaysian currency rose as high as RM3.5440 against the US dollar, its strongest since Feb 9, in its third straight session of gains, making the ringgit-priced palm feedstock more expensive for foreign customers.

“Palm is under pressure because of the strong ringgit, and talk of higher production estimates,” said a trader with a foreign commodities brokerage in Malaysia.

In its fifth session of losses, the benchmark July contract on the Bursa Malaysia Derivatives exchange touched RM2,075 a tonne in early trade, its lowest since Sept 22, before settling at RM2,092 by today’s close, down 0.8%.

Total traded volume stood at 67,540 lots of 25 tonnes each, well above the usual 35,000 lots.

Technical charts showed that palm oil is expected to test a support at RM2,076 per tonne, a break below which will open the way towards a range of RM2,039-2,060, Reuters market analyst Wang Tao said.

Palm’s steep drop was not mirrored by soyoil, a common food and fuel substitute, enabling the tropical oil widen its discount to the rival oil.

But the discount has to be attractive enough to be able to pull back demand from price-sensitive buyers, traders said.

“It (the discount) has to be at a level where it can attract demand. At the moment, it is not enough,” the Malaysia-based trader added.

Palm olein is currently around US$70 (RM248.80) cheaper than Argentine soyoil, from an under US$25 discount early April, but narrower than US$160 at the start of 2015.

The US July soyoil contract was down 0.1% in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange gained 0.1%.

Elsewhere, Australian Bureau of Meteorology said Pacific Ocean sea temperatures now exceed El Nino thresholds, while trade winds have weakened over the last few weeks. Should this pattern continue, the bureau said, an El Nino will develop.

In other markets, oil prices fell today ahead of weekly US crude inventory data that is expected to hit another high, withdrawing further from a rally that saw Brent crude futures touch a 4½ month high.

Offline vincent88

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Re: CPO Latest Updated News
« Reply #185 on: April 29, 2015, 11:03:00 PM »
RAM Berhad : CPO prices to remain soft amid lacklustre demand and weak crude oil prices

Published on 29 April 2015

The price of crude palm oil (CPO) came in at the lower end of RAM's price forecast of RM2,200/MT-RM2,400/MT for 1Q 2015, averaging RM2,204/MT. Notwithstanding the effects of a weak ringgit, the commodity's price is expected to remain soft, as concerns over lacklustre demand amid competition from an ample supply of substitute oils and a weak crude oil-price environment weigh on prices. The still-narrow premium of soy oil to CPO (1Q 2015: c.USD90/MT, 2014: c.USD88/MT) could also reduce the appeal of CPO, dampening growth in demand for the commodity as consumers switch to competing oils.

A pick-up in CPO production, as yields recover after disruptions caused by floods and the effects of dry-weather that had depressed CPO production in January and February 2015, may lead to a build-up in Malaysia's palm oil inventory to over 2 million MT in the near term, further pressuring prices. As at end-March 2015, palm oil stocks in Malaysia stood at 1.87 million MT, a respective 10.5% and 5.2% higher y-o-y and m-o-m.

Nevertheless, we note the potential price catalyst from the successful implementation of Indonesia's mandate to increase the biofuel content in diesel from 10% to 15%. The B15 mandate is estimated to boost CPO demand by 2 million MT in 2015. Although a higher biodiesel subsidy of Rp4,000/litre and plans to impose levies on the republic's palm oil exports to fund the B15 programme would be positive to its execution, we remain cautious of the pace of implementation, given that it is still in the preliminary stages and in view of concerns of engine incompatibility with high biodiesel content. Further, the execution of previously initiated mandates had been marred by pricing, infrastructure and logistical challenges

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Re: CPO Latest Updated News
« Reply #186 on: May 06, 2015, 11:37:39 PM »
Palm oil hits 1-month high after Indonesia signs export levy

* Price touches 2,200 ringgit in early trade

* Indonesia palm export levy approved, effective 3rd week of May

* Malaysia's April palm stocks seen at 5-mth high of 2.13 mln T- Reuters poll

* Palm oil targets 2,235 ringgit -technicals

By Anuradha Raghu

KUALA LUMPUR, May 6 (Reuters) - Malaysian palm oil futures rose for a third day on Wednesday to touch their highest level in a month, following a jump in soy markets, and as investors covered short positions after Indonesia set a palm export levy to fund biodiesel subsidies.

Indonesian President Joko Widodo has signed a regulation requiring exporters to pay a levy of $50 per tonne of crude palm oil and $30 for processed palm oil product shipments, an energy ministry official said on Wednesday.

The regulation will take effect by the third week of May at the latest, the chief economic minister said. "It's a rally towards 2,200 ringgit - Indonesia has just signed the levy," said a palm trader with a local commodities brokerage in Kuala Lumpur. "There's a technical buy up ... All this is poised to push prices further to test the 2,200 ringgit."

Palm typically tracks soyoil, a common food and fuel substitute. The U.S. July soyoil contract rose 0.9 percent in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange gained 1.3 percent.  "The market is flying - look at how soybean oil is rallying," said a second palm trader in Malaysia. "We're trying to move according to the Dalian which is very strong," the trader said, adding that a rally in Chinese palm olein prices also underpinned benchmark prices. The September contract for palm olein on the Dalian exchange has surged 2.5 percent to 5,162 yuan ($832.57) by 1010 GMT.

But rising supplies in Malaysia, the world's second-largest grower, may dent palm's rally. Inventories at end-April likely rose to a five-month high of 2.13 million tonnes, a Reuters poll showed on Wednesday, as crude palm output continued to climb andoutpaced export demand.


In other markets, oil prices rose more than a dollar to 2015 highs on Wednesday as a month-long rally gained further impetus from a fall in U.S. crude stocks and conflict in the Middle East.

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Re: CPO Latest Updated News
« Reply #187 on: May 14, 2015, 11:38:08 PM »
El Nino May Spur Palm Oil Rally as UBS Highlights Impact

Palm oil may rally should an El Nino weather pattern spur dry conditions across Southeast Asia, hurting output, while key buyers such as China bring forward purchases to guarantee supplies.

Prices may advance to 2,500 ringgit ($694) a metric ton over the next three months, Maybank Investment Bank Bhd. analyst Ong Chee Ting said in a report on Wednesday. That’s 14 percent higher than Wednesday’s close on Bursa Malaysia Derivatives.

The return of an El Nino for the first time since 2010 was declared on Tuesday by Australia’s Bureau of Meteorology, which said that the event could be substantial. El Ninos influence conditions across the globe and in Asia they can bake Indonesia and Malaysia, the two largest palm oil producers. Planters’ stocks including IOI Corp. Bhd. in Malaysia rose on Wednesday.




“In the coming months, we expect palm oil export figures to pick up as end-buyers like China, with its low inventory level, may take a defensive strategy to stock up ahead, on fear of a possible supply crunch,” Ong said. While this will boost the palm oil price, the extent of any advance will depend largely on the El Nino’s intensity, Ong said.

Palm oil climbed to a five-week high in Kuala Lumpur on Tuesday after the El Nino announcement by the Australian forecasters. Futures ended 1.2 percent lower at 2,198 ringgit a ton on Wednesday. They last traded above 2,500 ringgit a ton in June.

Shares Advance

IOI climbed 3.4 percent to 4.30 ringgit, while Felda Global Ventures Holdings Bhd. retreated 0.5 percent. Both were raised to hold from sell at Maybank. PT Astra Agro Lestari shares surged 7.7 percent in Jakarta, while Bumitama Agri Ltd. advanced 1 percent in Singapore.

Palm oil production in Indonesia and Malaysia declined at the time of the last strong El Nino in 1997-1998. The two countries account for 86 percent of world supplies, according to the U.S. Department of Agriculture. Oil palms need about 150 millimeters to 200 millimeters of precipitation a month, according to the Malaysian Meteorological Department.

Lower rainfall and soil-moisture levels can hurt yields after a lag, with the effects of dry weather typically felt 10 to 12 months or 22 to 24 months later, Ivy Ng, an analyst at CIMB Investment Bank, said in a report.

A moderate El Nino, combined with a strong execution of a biodiesel mandate in Indonesia, could benefit prices in late 2015, Ng said in the report on Tuesday. Gains may be limited near term on seasonally high supply and reserves, she said.

“We have to remember that the impacts of El Nino tend to, perhaps particularly in palm oil, not be shown up immediately,” Wayne Gordon, an analyst at UBS Group AG in Singapore, said in a Bloomberg TV interview. “ We’ve put it on the radar, we’ll take a bit of time, and then we’ll look at it on a more serious note as we get into the third quarter.”

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Re: CPO Latest Updated News
« Reply #188 on: May 23, 2015, 04:13:52 PM »
(Bloomberg) -- Shipments rose 53% in first 20 days of May from 701,560 tons in same period in April, Intertek says.

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Re: CPO Latest Updated News
« Reply #189 on: May 25, 2015, 10:04:30 PM »
Malaysia’s May 1-25 Palm Oil Exports 1,387,782 (+53.5%) Tons: Inter

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Re: CPO Latest Updated News
« Reply #190 on: May 30, 2015, 11:05:31 PM »
Delay in Indonesia palm oil export levy weighing on Malaysian futures

In Malaysia, palm oil exports were up 54% on the month during the period May 1-25, a move that should have helped support futures prices more than it did thanks to continuing delays on Indonesian export levies that means Indonesian product will continue to flow into the market. Export news helped to lift prices off of their one-month low but levels should remain flat for the near term.

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Re: CPO Latest Updated News
« Reply #191 on: June 02, 2015, 10:19:39 PM »
VEGOILS-Palm hits 3-month high on soyoil rally, weak ringgit

 Palm touch 2,349 ringgit, highest since March 5

* Ringgit down for 7th day, hits 3.7050 per U.S. dollar

* Palm oil targets 2,385 ringgit -technicals

KUALA LUMPUR, June 2 (Reuters) - Malaysian palm oil futures hit a three-month high on Tuesday,

extending gains into a fourth straight session, buoyed by an overnight rally in soyoil markets and a

weak ringgit.

The U.S. July soyoil contract climbed almost 8 percent over the last two sessions, lifted

by increased biodiesel targets by the U.S. Environmental Protection Agency - a move that may spur

consumption of the edible oil.

Echoing the rise, the August palm oil contract on the Bursa Malaysia Derivatives

exchange rose as much as 2.4 percent to 2,349 ringgit ($635.38) a tonne intraday, its highest since

March 5. Prices settled 0.8 percent higher at 2,312 ringgit by the day's close.

Total traded volume stood at 40,716 lots of 25 tonnes each, above the average 35,000 lots.

"The market is rising because of the strength in soybean oil, with the ringgit assisting the

rise," said Chandran Sinnasamy, head of dealing at LT International Futures in Malaysia, adding that

palm has entered a new range between 2,250-2,400 ringgit.

"At the moment everything looks supportive. Palm may fall for correction in an overbought chart,

but will be well supported between 2,280-2,300 ringgit," he said.

Palm prices, also supported by a drop in the ringgit to seven-week lows, have jumped

more than 10 percent from a trough of 2,121 ringgit reached on May 25. A weak ringgit makes palm a

cheaper option for overseas buyers.

Technical charts show palm oil is expected to break resistance at 2,346 ringgit and rise to the

next resistance at 2,385 ringgit, driven by an extended wave C, according to Reuters market analyst

Wang Tao.

The U.S. soyoil contract was at 34.32 U.S. cents a pound by 1015 GMT, down 0.6 percent, while

the most active September soybean oil contract on the Dalian Commodity Exchange was up 1.3

percent.

In other markets, oil prices rose on Tuesday as the dollar weakened and on expectations that

OPEC producers would maintain their group production target at current levels and resist pressure

for an increase.

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Re: CPO Latest Updated News
« Reply #192 on: June 07, 2015, 04:23:31 PM »
Malaysia’s May Palm Oil Exports 1,553,281 Tons: Intertek

(Bloomberg) -- Shipments jumped 44.7% from 1,073,482 tons
in April, according to Intertek Testing Services.

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Re: CPO Latest Updated News
« Reply #193 on: June 08, 2015, 10:35:00 PM »
VEGOILS-Palm retreats from 3-mth high on demand worries, 9-yr low ringgit caps losses

* Prices touch 2,362 ringgit, highest since March 5 in early trade
* Ringgit slumps to 9-year low at 3.7680 per U.S. dollar
* Malaysia plans to implement B10 biodiesel by Oct- minister


By Anuradha Raghu
KUALA LUMPUR, June 8 (Reuters) - Malaysian palm futures retreated from an over three-month high on Monday on worries of weakening demand, but losses were capped by a slump in the ringgit to a nine-year low and Malaysia's plans to lift its biodiesel mandate to 10 percent by October.
The August palm oil contract on the Bursa Malaysia Derivatives exchange was down 0.3 percent at 2,333 ringgit ($619.49) a tonne by Monday's close, having eased from an intraday high of 2,362 ringgit, its highest since March 5.
Total traded volume stood at 36,762 lots of 25 tonnes each, just above the usual 35,000 lots.
"Hearing of weak demand. Palm olein prices are under pressure," said a trader with a foreign commodities brokerage in Kuala Lumpur. Exports of Malaysian palm products in May had surged about 45 percent from a month ago, although some market players were doubtful that the strong demand can be sustained.
The Malaysian ringgit hit 3.7680 per dollar late Monday, its lowest since January 2006, after robust U.S. jobs data bolstered expectations of an interest rate hike by the Federal Reserve by the year-end.  Weakness in the Southeast Asian currency makes the ringgit-priced palm oil feedstock cheaper for overseas buyers.
Malaysia, the world's second-largest palm grower plans to raise its biodiesel mandate to 10 percent by October this year, from 7 percent currently, plantation industries and commodities minister Douglas Uggah Embas said on Monday. The B10 programme is expected to consume 1 million tonnes of crude palm oil a year, the minister said.
The minister added that the six-magnitude quake which struck the Borneo state of Sabah on Friday did not cause major damage to palm plantations or mills. Sabah is Malaysia's biggest palm-growing state, and accounted for 31 percent of the country's total crude palm oil output of 19.7 million tonnes in 2014.
The U.S. Geological survey said the quake's epicentre was about 54 km (33 miles) from the state capital of Kota Kinabalu. In competing vegetable oil markets, the U.S. July soyoil contract was down 1 percent by 1026 GMT, while the most active September soybean oil contract on the Dalian Commodity Exchange dropped 0.2 percent.
Oil prices slipped on Monday after China's fuel imports dropped sharply and as markets digested an OPEC decision to keep its production target unchanged, a move analysts said would keep the market oversupplied for the rest of the year.

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Re: CPO Latest Updated News
« Reply #194 on: July 27, 2015, 11:19:50 PM »
Malaysia July 1-25 Palm Oil Exports 1.15M Mt (-17.9%) : Intertek

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Re: CPO Latest Updated News
« Reply #195 on: August 10, 2015, 11:48:27 PM »
Malaysia’s Aug. 1-10 Palm Oil Exports 498,993 Tons: Intertek

(Bloomberg) -- Shipments surged 57.4% from 316,942 tons

from July 1-10, according to Intertek Testing Services.

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Re: CPO Latest Updated News
« Reply #196 on: August 10, 2015, 11:50:30 PM »
MPOB Says Malaysia's Palm Oil Stockpiles at 2.27m Tons in July

(Bloomberg) -- Palm oil stockpiles in Malaysia, world’s

second-largest producer, rose 5.3% to 2.27m metric tons in July from month earlier, Malaysian Palm Oil Board says in statement Aug. 10.

   * Output rose 2.9% to 1.82m tons, while exports fell 5.6% to 1.6m tons

   * NOTE: Est. according to Bloomberg survey showed inventories  at 2.16m tons, production at 1.78m tons and shipments at 1.58m tons

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Re: CPO Latest Updated News
« Reply #197 on: August 10, 2015, 11:54:29 PM »
MPOB Says Malaysia's Palm Oil Stockpiles at 2.27m Tons in July

(Bloomberg) -- Palm oil stockpiles in Malaysia, world’s

second-largest producer, rose 5.3% to 2.27m metric tons in July from month earlier, Malaysian Palm Oil Board says in statement Aug. 10.

   * Output rose 2.9% to 1.82m tons, while exports fell 5.6% to 1.6m tons

   * NOTE: Est. according to Bloomberg survey showed inventories  at 2.16m tons, production at 1.78m tons and shipments at 1.58m tons

For how long palm oil can be stockpiled before it gets expired ?

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Re: CPO Latest Updated News
« Reply #198 on: August 11, 2015, 11:04:09 PM »
Palm Oil Reserves in Malaysia Jump as Output Surges in July

Palm oil stockpiles in Malaysia expanded to the highest since November after production climbed in the world’s biggest supplier after Indonesia.

Stockpiles rose 5.3 percent to 2.27 million metric tons in July from a month earlier and 34 percent from a year ago, Malaysian Palm Oil Board data showed Monday. Output rose 2.9 percent to 1.82 million tons from June to a record for July and the highest since October. The median estimates for inventory and production were 2.16 million tons and 1.78 million tons respectively in a Bloomberg survey published last week.

Rising supplies may further weaken futures which slumped this month to the lowest level since September and are headed for a fourth annual loss in five years. Production in the world’s top growers will climb more than forecast to a record this year as a “lazy” El Nino event fails to curb output, sending prices to a 6 1/2-year low by the end of September, according to Dorab Mistry, director at Godrej Industries Ltd.




“Initially, we were expecting the El Nino effect but at the moment we don’t really see that,” Benny Lee, market strategist at Jupiter Securities in Kuala Lumpur, said by phone. “We still see quite good rains. Production will still remain high at least in the next two months.”

Futures closed at 2,029 ringgit ($514) a ton on Bursa Malaysia Derivatives in Kuala Lumpur on Monday. Prices reached an 11-month low of 2,006 ringgit on Aug. 6 and are down 10 percent this year.

Prices may slump next month to 1,900 ringgit, a level last seen in March 2009, Mistry said on Aug. 6, reiterating a forecast made in April. A drop to that level would put palm oil into a bear market. Stockpiles in Malaysia may hit a record 3 million tons by the end of November, he said.

Exports fell 5.6 percent to 1.6 million tons, after reaching 1.7 million tons in June, the highest level since October 2012, board data show. Malaysia exported 498,993 tons in the first 10 days of August, a 57 percent surge from the same period in July, surveyor Intertek said on Monday.

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Re: CPO Latest Updated News
« Reply #199 on: September 01, 2015, 10:15:15 PM »
Malaysia Aug. Palm Oil Exports 1,542,017 (+0.2%) Tons: SGS