Dear Investors of i3 Forum

There is a Knee jerk reaction to Palm oil Cpo sudden sell down due to Uplift of Indon Pan Oil Export ban

So Cpo future has dropped below the Rm5,000 barrier

However, it is still too early to tell if CPOPrices will remain below Rm5000 or drop lower or rebound up again in coming weeks

As we know there are 3 other Vege Oil that  competes against Palm oil, namely Canola/Rapeseed oil, Soyoil & Sunflower seed oil

Plus the impact on Biofuel from high Crude oil prices as well

Let's take a look at them all

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1) CANOLA OIL (As we know not until Oct 2022 will there be a next harvest (if any) from Canada after the Canola crop failure of last year due to drought

Canola oil is still above USD1000 (was Usd600 last world record) See post on comment page to view Canola price chart for proof

So Canola oil still up by 66% above LAST WORLD RECORD

Unless Canola oil also fall below USD600 then palm oil can fall below Rm4,000 (last record)

2) Soyoil up from US 30 sen a lb to over Us70 sen a lb (Unless Soyoil falls to Us 40 sen a lb Palm oil Cpo should be well supported

3) SUNFLOWER OIL

Ukraine & Russia exports 70% of World Sunflower oil

With War decimating Sunflower Crops & Export Embargo on Russia Prices of Sunflower Oil will not be cheap

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4) BRENT CRUDE IS OVER USD110 (We see that in price rise of Ron 97 petrol at the Pump to over Rm4.50 a litre (Was Rm2.70)

So The Incentive to Use Soybean, Canola & Palm oil as biodisel will increase

WATCH ALL THESE 4 VERY VERY CAREFULLY IN WEEKS AHEAD

IF THEY DON'T CRASH THEN WE WILL SEE PALM OIL MAINTAIN OR EVEN REBOUND UP AGAIN

NOW THE UPLIFT OF INDON PALM OIL BAN WILL BENEFIT THOSE MALAYSIA PALM OIL COMPANIES WITH OPERATIONS IN INDONESIA

SIMEDARBY PLANT WILL BENEFIT

IOI CORP HAS A PALM OIL MILL WORTH RM30.5 MILLIONS IN WEST KALIMANTAN WILL BENEFIT

TSH RESOURCES WITH PALM OIL MILLS LOCATED IN EAST KALIMANTAN, WEST KALIMANTAN & SUMATRA WILL BENEFIT

​Indonesian farmers stage protests against palm oil export ban

In a statement, the smallholder farmer’s group Apkasindo said since the announcement of the export ban the price of palm fruit had dropped 70% below the floor price set by regional authorities.

Meanwhile, Apkasindo estimated that at least 25% of palm oil mills has stopped buying palm fruit from independent farmers.

AS WE KNOW TSH HAS 4 PALM OIL MILLS WITH STORAGE TANKS NOW FULL TO THE BRIM WITH CPO (BOUGHT AT DISCOUNT) AND THE UPLIFT OF PALM OIL EXPORT IS TIMELY AND WILL BENEFIT IT

TSH ALREADY GOT ANOTHER 3.9 SEN PROFIT NOT RECOGNISED YET IN MAY 2022 RESULTS

SO TOGETHER WITH GOOD PALM OIL SALE & THIS 3.9 SEN RESIDUAL PROFIT FROM SABAH ESTATES DISPOSAL

TSH SHOULD REPORT A GOOD QUARTER FOR AUGUST 2022 RESULTS

BEST REGARDS

Calvin Tan

Please buy or sell after doing your own due diligence or consult your remisier/fund manager