THE INVESTMENT APPROACH OF CALVIN TAN

MPOC: Malaysia palm oil prices seen trading above RM6,000 in 2022 Mei Mei Chu / Reuters June 01, Calvin comments

calvintaneng
Publish date: Wed, 01 Jun 2022, 11:21 PM
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Hi Guys,

I have An Investment Approach I which I would like to all.
MPOC: Malaysia palm oil prices seen trading above RM6,000 in 2022
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KUALA LUMPUR (June 1): State agency the Malaysian Palm Oil Council (MPOC) on Wednesday lowered its production outlook for the world's second largest producer and pegged prices to remain above RM6,000 a tonne this year.

MPOC forecast Malaysia's 2022 production at 18.6 million tonnes, up from 18.1 million tonnes in 2021 as migrant workers are expected to enter and help ease a labour shortage at plantations.

The world will see higher demand for oils and fats in 2022, and global palm oil dependency will continue to rise, said Mohd Izham Hassan, MPOC deputy director.

Oils and fats exports in 2022 will likely be close to 97 million metric tonnes and palm oil share could be as high as 60%," he added.

Global vegetable oil prices, including palm oil, have rallied to records this year as Russia's invasion of Ukraine disrupted sunflower oil shipments and export restrictions in top producer Indonesia further squeezed global supplies.

"Lower than expected supplies, higher demand, volatility of Brent crude oil prices and geopolitical tensions remain factors in determining price direction," Mohd Izham said.

MPOC pegged Malaysia's benchmark palm oil prices to remain between RM6,500-RM6,800 until the end of July, and ease to RM6,300-RM6,500 until September due to the resumption of Indonesian exports, Mohd Izham said.

"A price correction for all vegetable oils is expected to take place by late 4Q of 2022 but palm oil will likely be traded above RM6,000 per metric tonne," he added.

Calvin comments:

This is by far the most authentic view on Palm oil after a very long bashing by Naysayers

Hear again

MPOC pegged Malaysia's benchmark palm oil prices to remain between RM6,500-RM6,800 until the end of July, and ease to RM6,300-RM6,500 until September due to the resumption of Indonesian exports, Mohd Izham said.

From now June 1st till end of July Cpo expected to range between Rm6,500 to Rm6,800

Very excellent profits as cost of Cpo production for most about Rm1,600 to Rm1,800 per ton

(Gross profit is 200% to 300%!)

And till September Cpo still expected to trade between Rm6300 to Rm6500

And more

"A price correction for all vegetable oils is expected to take place by late 4Q of 2022 but palm oil will likely be traded above RM6,000 per metric tonne," he added.

From Oct till end 2022 Cpo still expected to be above Rm6,000 a ton

THIS IS INDEED FANTASTIC & REFRESHING NEWS

Many Palm Oil Tycoons became Billionaires like Robert Kuok, Kuok Khoon Hong, Remisier King Peter Lim & 14 more Indonesia Palm oil tycoons became Billionaires when CPO was highest at Rm4,000

 

SO NOW CPO AT RM6,000 TO RM6,800 RANGE CAN ONLY MEAN THAT ALL PALM OIL COMPANIES SHOULD DO VERY WELL

AND THIS TIME OF PRICE WEAKNESS PRESENTS US A BARGAIN OPPORTUNITY TO BUY CHEAP

 

WARMEST REGARDS

Calvin Tan

Please buy or sell after doing your own due diligence

 

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Discussions
1 person likes this. Showing 23 of 23 comments

calvintaneng

A simple example

If cost of Cpo production Rm1600

If Cpo price Rm3200
Profit 100%

If Cpo Rm4,800
Profit jumps 200%

If Cpo Rm6,400
Profit skyrockets 300%

To know by experience
Go see cost of cooking oil in supermarkets

2 months ago

calvintaneng

Cpo average price for March 2022 :Rm6,678

Cpo price for April 2022 average :Rm6,873 (highest qtr ever in new record)

For May 2022 if Cpo just maintain status quo plus increased Ffb then all palm oil co will report another fantastic Qtr by August 2022

2 months ago

calvintaneng

not just fantastic but will be new world record for many

At this rate of Cash Inflow eventually most Palm oil co will have multi Billions Cash in Accounts

Now this temporary price weakness presents a great bargain opportunity to buy on weakness

Buy low sell high is now

2 months ago

investor2021trading

ffb production will tapers off by a ton/hect each month from June onward!

2 months ago

calvintaneng

production season of Cpo in Malaysia

low season
November to February

mid season progressing up
March to August

Peak season
September & October

Every year the same

So from June to October next 5 months will be glorious production and harvest

2 months ago

calvintaneng

Low of season CPO production usually lasts from November until February; the moderate season is usually from March until August and the peak season is either in September or October every year. ...

Seasonal trend in crude palm oil (CPO) production.

2 months ago

stockraider

What is the key diff in ownership & management between Bplant V Jtiasa leh ?
Bplant reward its shareholders by distributing reasonable dividend whereas Jtiasa siphoned cash & profit for its own major shareholder profit mah!

In other words even if Jtiasa going to make good profits, they are not going to share any with u loh!

On the other hand, u can rely on Bplant for its good corporate governance mah!
And right now Bplant is actually making more monies than Jtiasa loh!

2 months ago

calvintaneng

All palm oil co will do very well

Very high cpo prices above Rm6000 new record (past record was Rm4000)

Higher ffb production months ahead from now

2 months ago

calvintaneng

Now some Us analysts are predicting soft commodities like grain and vege might go into 5 year long bull run due to prolonged Russian-Ukraine wars

1st WW lasted 4 years from 1914 to 1918

2WW lasted 6 years from 1939 to 1945

There will be a permanent high for palm oil if that is true

2 months ago

StartOfTheBull

Good info Calvin. Thank you

2 months ago

stockraider

Yes extreme undervalue in CPO share loh!

Cpo at Rm 4000 is consider very good loh!
CPO now is not rm 5000 but above rm 6000 mah!

2 months ago

calvintaneng

Superbull in palm oil co earnings

Super bearish sentiment now

Super bargain hunting time in palm oil

2 months ago

calvintaneng

Then later Super bull run unstoppable

Super rich investors of palm oil will emerge like Robert Kuok, Kuok Khoon Hong and Remisier King of Singapore Peter Lim

All these became palm oil Billionaires when Cpo was only a mere Rm3,500 to Rm4,000 historic high

Many doubters and naysayers will totally miss the palm oil Superbull and later go banging their heads on the wall

2 months ago

Wizman

This good news should be share / inform to Malaysian by all-Investment Banks to encourage its clients to
invest undervalue palm oil stocks in order to make fantastic returns as compare to those common stocks
but instead this wonderful info share by our good Singaporean brother calvin tan.

What happen to Investment Banks?

It's time to wake-up all retail investors to know the true fact of palm oil industry!
CPO won't be cheap for many years and it's good news to palm oil planters in
Msia & Indonesia will making good profit FY2022 and multi-years onwards.

Its the right timing to invest palm oil stocks now as most palm oil stocks are severely undervalued!

2 months ago

calvintaneng

YES!

Palm oil Stocks will all enter Super Earnings Season

2 months ago

Raymond Tiruchelvam

just saw news that indon govt is barring its workers to come to malaysia to harvest CPO, and therefore looks like production for 2022 will most probably be lower than 2021 overall, meaning revenue will probably be also lower, but if demand keeps the same and supply is low, rightfully it shd pressure the price to move up..... therefore less production, less sales but price move higher.... if alls well, we will end up having same revenue in 2022 compared to 2021.... what say u?

2 months ago

gladiator

Same revenue sustain profitability by the end of the year will make more plantation shares look cheap. The current drop in plantation may due to everyone expect CPO price to drop to below RM5000 in 2H 2022.

2 months ago

calvintaneng

Less ffb is compensated by skyhigh prices more than make up for any ffb shortfall

2 months ago

calvintaneng

As to indon labour Tsh will benefit the most as it has lots of palm oil in kalimantan and sumatra

Dirty cheap cost of labour at rupiah 1.725 millions or only Rm520 per month

2 months ago

StartOfTheBull

Good news.
SGX plantations stocks surge.
Expecting another bullish day for plantations stocks tomorrow.

2 months ago

stockraider

Unique point is that bplant got valuable land of worth more than Rm 2b....if sold can reinvest buying other plantation & pay div as well loh!

2 months ago

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