Dear Investors/Traders 

We believe for Palm Oil the best is yet to come

And These Are The Salient Factors

1) ABUNDANT HARVEST OF FRUITS

As reported by SOP latest FFB harvest yesterday FFB (Fresh fruit bunches) has increased back to 109,000 Metric Tonnes.

August 2021 shows a strong upturn of FFB yields leading to Huge & Abundant Harvests

So all Palm Oil Companies with Large Upstream Acreages like THPLANT, TSH RESOURCES, TAANN, BPLANT & SOP All with over 200,000 Acres will Reap the Most Abundant Harvest of Fresh Fruit Bunches

So much Fruits? Will there be a ready market?

YES! OF COURSE!

See the Next Topic:

2) RETURN OF HIGH FESTIVE SEASON DEMAND

November 14 2021 will be Diwali in India. Also called Deepavali in Malaysia & Singapore

See the Surge of Palm Oil Purchase from India

In August, India’s palm oil imports surged 84% m-o-m to 850,000 tonnes, up from 465,600 tonnes, marking the largest monthly purchase of palm oil in the 2020/21 marketing year (MY) (Nov’20 – Oct’21). Some market participants estimate that the figure may have even been close to 875,000 tonnes.

Imports surged on the back of lower import duties (which will run through till the end of September 2021), as well as the need to replenish historically low stock levels due to weaker imports over the past few months. The 850,000-tonne imported quantity remains close to the five-year average of 835,000 tonnes, emphasising just how weak imports were during the previous months, despite the big increase seen during August. The removal of refined palm oil and olein restrictions until the end of the year also supported import volumes during August.

In terms of a specific breakdown, Indian buyers imported 600,000 tonnes of Crude Palm Oil (CPO) in August, with imports of Refined Bleached and Deodorised (RBD) palm oil reaching 170,000 tonnes, up significantly from the 14,000 tonnes of RBD imported in July 2021. Inedible processed palm products and palm kernel oils accounted for the remainder of the 850,000-tonne total.

With festivals such as Diwali and Dussehra around the corner in October, palm oil imports for edible purposes will likely rise further to meet demand, likely causing prices to remain firm over the corresponding period.

Your toothpaste, hair cream, hair dye, lipstick, all breads, cakes, biscuit contain palm oil

Even children's milk formula got palm oil

See

CHILDREN

Infant formula

Palm oil is high in palmitic acids, which is also found in breast milk. That is why palm oil is often used in infant milk formula as it most closely mimics the nutrition profile of breast milk.

Palm oil ingredient name: Palm olein

And right after Deepavali is the Year end Christmas & New Year 2022 Celebrations

Lots of cakes, foods, cookies will be in use. So palm oil demand will be high

CHINESE NEW YEAR FALLS ON FEBRUARY 1ST 2022

Yes after India's 1.35 Billion people finished their Diwali will come demand from China's 1.4 Billion strong population for the 15 days of Chinese New Year Feasting

Can expect more Cpo imports from China as the season rotates

Also in USA Biodisel Refineries will speedup use of soybean & corn as feedstock - leading to high & sustained Soyoil and by proxy Palm oil at elevated prices

Another demand comes from Population Growth

Since the closure of Malaysia's border on March 18 2020 more than 120 Million babies were born into this world

Population of earth is 8 Billion

At 1% population growth rate is 80 million

March 2020 to Sept 2021 is 1 & 1/2 years so Population on earth has increased by another 120 Million people

Covid 19 death only less than 5 Million people as of now. 

SO THERE ARE MORE PEOPLE ALIVE NOW THAN ON MARCH 18TH 2020

AND SINCE 50% OF SUPERMARKET ITEMS CONSIST OF PALM OIL THE DEMAND CAN ONLY GO UP

BUT NO MORE CONVERSION OF FOREST TO PALM OIL IN MALAYSIA. INDONESIA ALSO BANNED NEW PALM OIL ESTATES BY A MORATORIUM

SO DEMAND IS EVER INCREASING & NEW SUPPLY IS NOW LIMITED

3) SO PALM OIL PRICES WILL BE SUSTAINED FROM RM3500 TO RM4500 RANGE

This is very excellent news as most palm oil co cost of production around Rm1500 a ton

That equals to 133% to 200% More Profits for all Happy Palm Oil Companies

Palm Oil Owners are so bullish that KLK has acquired the Shares of IJM Plant

Others are comtemplating which will be the Next Take Over Target

Over flowing with Cash (Palm oil is Cash Crop) stocks like Nsop, Riverview, InnoPlant, Kfima & others are now giving out SPECIAL DIVIDENDS over above its usual dividends. 

ALL THESE SHOW VERY BRIGHT PROSPECTS

Best regards

Calvin Tan Research

Please buy or sell after doing your own due diligence or consult your Remisier/Fund Manager

STOP PRESS

AND IN MAY 2022 HARI RAYA AGAIN WILL INCREASE DEMAND FOR MUSLIMS ALL OVER  THE MIDDLE EAST

MENA (Jan – July) 2021