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
calvintaneng
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Hi Guys,
I have An Investment Approach I which I would like to all.
I have An Investment Approach I which I would like to all.
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 26 of 26 comments
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
2022-06-02 08:25
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
2022-06-02 08:28
ffb production will tapers off by a ton/hect each month from June onward!
2022-06-02 08:35
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
2022-06-02 09:25
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.
2022-06-02 20:09
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!
2022-06-03 07:48
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
2022-06-03 08:26
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
2022-06-03 12:26
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!
2022-06-03 15:33
Superbull in palm oil co earnings
Super bearish sentiment now
Super bargain hunting time in palm oil
2022-06-03 15:51
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
2022-06-03 15:55
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!
2022-06-03 17:36
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?
2022-06-04 02:19
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.
2022-06-04 09:03
Less ffb is compensated by skyhigh prices more than make up for any ffb shortfall
2022-06-04 20:17
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
2022-06-04 20:19
Good news.
SGX plantations stocks surge.
Expecting another bullish day for plantations stocks tomorrow.
2022-06-06 14:12
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!
2022-06-06 14:28
Do not be greedy loh!
Work on your CPO valuation at around average Rm 3500 per tonnes loh!
2023-02-19 14:41
Palm oil future could trade below RM3000 for a long time.
Big time buyers are becoming self sufficient producers and competition from Africa planters
are increasing. Do not dream of a rosy picture in palm oil. Diversify!
2023-05-05 17:48
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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
2022-06-01 23:42