- According to news reports, a delegation of senior members from RSPO (Roundtable for Sustainable Palm Oil) visited Sime Darby Plantation Liberia in Western Liberia last week.

- The visit was intended to update RSPO with an update of activities following the withdrawal of a complaint filed by the locals against Sime Darby three years ago.

- The local community said that there were missteps and lack of information on Sime Darby’s expansion plans in 2011. Since then, these have been rectified. According to the report, at the height of the crisis Sime Darby was forced to temporarily lay-off 900 of its contracted workers due to safety reasons. Roads were blocked and machines were shut down.

- Now, the local community are supportive of Sime Darby’s efforts. The roads, clinic, schools, employment and other social benefits have been more than enough to support the local community’s decision to offer more land. Communities in GolaKonneh and Medina Townships have officially asked Sime Darby to develop their areas but Sime Darby has yet to make a decision.

- Bloomberg reported that Indonesia is seeking US$5bil to cut carbon emissions from its forests. According to an official from the agency for Reducing Emissions from Deforestation and Forest Degradation (REDD+), Norway’s commitment of US$1bil in 2010 was just the beginning. Indonesia’s target is to cut greenhouse gas emissions by 26% using its own funds or as much as 41% of international aid.

- As part of its agreement with Norway, Indonesia has a moratorium on new permits to develop peatlands and primary forests. The moratorium lasts until 2015F.

- Australia’s Bureau of Meteorology said that while the tropical Pacific Ocean temperature is at levels typically associated with a weak El Nino, waters below the surface have cooled and atmospheric patterns continue to remain neutral. The bureau said that climate models continue to indicate that El Nino would develop by spring 2014 (September).

- Two independent cargo surveyors said that palm oil shipments from Malaysia expanded by 4.6% and 5.8% in June compared with May. The increase in exports was driven by the US and China. China bought 4.6% more palm oil while palm oil exports to the US rose by 46% MoM in June. Palm oil exports to India fell by 4.5% while European Union imported 21.3% fewer palm oil.

- Finally, palm oil inventory at the major ports in China stood at 1.07mil tonnes as at 4 July 2014. This was lower than 1.2mil tonnes as at 23 May but higher than the level of 1.15mil tonnes a year ago. 

Source: AmeSecurities