The spring replanting is stoppped at the east side of ukraine because it is a war zone and now controlled by russia military.

Cost of cpo production can no longer maintain at rm1600 per ton because of high fertilizer price and minimum wage. But then the increase of cost is still no way match the increase of cpo price. So even if production cost raises to rm2000 per ton, Palm oils company still can generate huge profit that no one ever seen before.

It is a no brainer to buy palm oil stock that has plenty of lands to hedge against inflation, somemore these lands able to generate huge cash flow.

Because their funds find themself caught on the wrong side. Imagine what happens to their fund performance if they r bearish on plantation sector since 2021.

https://focusmalaysia.my/following-ban-sime-darby-says-ferrero-is-not-a-customer/
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However, SDP confirmed that direct customer Cargill has decided to suspend all new sourcing of palm oil and derivative products from it, effective Feb 25.

“The supply of bulk products to Cargill in India has now been taken up by other customers. Nevertheless, SDP values all our customers and we are in discussions with Cargill on its decision,” it said.

isnt that cargill stops buying from simeplt last week news? and simeplt also mentioned that those extra palm oils already habis sapu by other customers.

nuke and contaminate all agriculture lands with radioactive?

Palm oil export by destination in 2021
-----------------------------------------
India - 23%
China - 12%
EU - 10%

Many ppl do not aware that despite the ban on palm oil, EU is still Msia's 3rd largest palm oil export destination after china and india.

https://www.standard.co.uk/news/uk/waitrose-morrisons-sunflower-oil-ukraine-war-rationing-b994280.html

Now the impact has begun.

Should mention that Market cap ÷ Ha = Land Value per Hectare (RM ,000)

A year ago palm oil land was about RM60,000 but i am not sure about the valuation now.

https://www.statista.com/statistics/267271/worldwide-oilseed-production-since-2008/

High edible oils price r here to stay since sunflower/rapeseed oils account for 17% of total world edible oils production. Even if the war ended the shortage still last a year because it is a yearly replanting season now and ukraine unable to do it.

thanks for the panic sell this morning. I sapu a lot of cheap shares at 57.5-59.0.

pls panic sell again tomorrow. thks.

https://www.theguardian.com/business/2022/apr/05/food-price-rises-ukraine-war-cooking-oil

palm oil is a cyclical industry so i agree that the price will eventually crash back to rm2000-3000, but then when? We all heard the crying wolf that the price will crash when it reached rm4000 last year, yet the price still going up with no end in sight.

With current global food inflation and FED's interest rate hiking is still far behind the curve. I dont think the price will fall back below rm5000 this year.

i agree that it will eventually crash but then we all heard it since it reached rm4000.

Keep on guessing because u will eventually right one time some time in the future.

despite cpo at historical high level, it is still the cheapest edible oil.

Kyy is a good businessman but he is definitely a lousy noob investor.

Evergrn
Flbhd
Hevea
Mieco

Indonesia has lifted the export restriction of palm oil 3 weeks ago. This old cun simply just BS without any fact check.

Already told u guys revenue lost the bid.

Close -7.5% with such an ugly candlestick.

Game over man, game over...

lose the bid, habis cerita. Insider selling big.

Minimum wage 1.5k has no impact on palm oil company because they already increased the wage long ago due to labour shortage and high palm oil price.

Some of them even willing to pay local malaysian because the profit margin is ridiculously high.

Revival of mrt3 project also benefit the local steel industry. Collect now while it is still cheap.

KUALA LUMPUR: Domestic steel mills are adjusting prices due to the potential increase in commodity prices, as market sources say European long steel prices are expected to rise sharply in the coming weeks.

Asteel Group managing director Datuk Sri Victor Hii Lu Thian said domestic steel millers are also factoring in risks associated with the potential increase in domestic and imported inflation, increase in oil and energy prices and potential disruption in the global supply chain.

"Domestic steel bar manufacturers have no control over the rising steel prices

which has resulted in higher building material costs.

"The rising energy prices in Malaysia also exacerbate this.

"In 2021, there was a 64 per cent increase in natural gas tariff, coupled with a hike in global freight costs. Thus, the conflict has prompted many domestic steel manufacturers to rethink the sustainability of their businesses," he told The New Straits Times.

Victor said that domestic steel manufacturers are currently experiencing an excess of inquiries, but it is important to note that steel allocation in our country is limited.

"We find that the demand in Malaysia is merely spurred by earlier purchases by industry players, such as the construction and automotive industries, so it does not impact their budgeted costs that the global price hike may impact," he said.

Steelmakers across Europe are cutting back their operations as power prices surge to record levels in response to Russia's invasion of Ukraine, Bloomberg recently reported.

Producers of the metal from Spain to Germany are beginning to slow down or entirely stop their output as the higher costs make production unsustainable, even with steel trading near record levels.

Russia's invasion of Ukraine has exacerbated already eyewatering power prices, affecting companies including Acerinox SA, Salzgitter AG and Liberty Steel, it said.

When asked on the company's contingency plan if steel prices continue to soar, Victor said Asteel is taking a more cautious approach to the potential price avalanche to manage safety stock inventory levels better.

"We take this precautionary measure due to a lesson learned from the steel price crash in the year 2008.

"Similar to any steel player, the fluctuation of steel prices impacts us as it impacts our cash flow and also our stock prices.

"We are continuously assessing the impact on our product supply chains, including

surging shipping and insurance costs. To mitigate the situation, we are looking at

the possibility of alternative supply chain vendors to overcome these barriers," he said.

Leon Fuat Bhd executive director Calvin Ooi Shang How expect domestic steel prices to rise in tandem with markets overseas as there are knock-on effects from the disruptions to the supply chain in terms of raw material and logistics cost.

When asked if the rising steel prices will be potentially pushed to consumers, he said this depends on the industry and sector.

"If steel prices continue to rise in tandem with other costs, businesses will inevitably pass through the costs to consumers," he said.

Calvin said the strategy is to sustain the business and ensure that any price hikes are gradual and do not disrupt the company's operations and customers.

"We are working closely with steel producers to secure the supply needed at competitive prices to fulfil customer requirements," he said, adding that the company will continue to monitor purchases closely, including the foreign currencies critical to global commodity prices, which in this case is the US dollar.

Victor said currently, the direct impact is still minimal, but there is always the potential for immediate risk in the long run if the conflict continues.

"We believe that most domestic steelmakers have been cushioned with raw material stockpiling and diversified

procurement for now," he said.

Victor noted that the international price trend influences the trajectory of domestic steel prices, for example, trends in China will affect Malaysia as they account for more than half of global crude steel production.

"So far, our domestic steel bar prices have been below China's market price, but this may soon change as the conflict has rattled the global commodity market with ripples spilling over to logistics and freight costs, resulting in delays and higher operational costs," he said.

tdm lost money 6 out of 8 recent quarters despite the cpo price consistencely above 3k. Now this old cun said it is ridiculously undervalue.

laugh die me...

Retail investors r funny. Y u ppl sell oil producer dnex when oil sky rocketing to usd100.

Funny, why is everyone dumping when oil hitting usd100?

War is coming, us100 oil is evitable.

Sell, ppl.

I want your tickets.

Most people do not aware that not every electronic devices need an high end amd/intel cpu chip.

What happens in dnex now is institutional funds vs operator fighting each others.

Who will win? Bull or bear?

It is a several local/foreign institutional funds but not bramal.

good bye to those who still waiting for 90cents and below.

testing rm1 again today.

u guys should look at core eps instead of just eps itself. Dont get misleaded.

oil hits 7 years high. apa lagi mau tunggu?

will 81.5c come to papa today?

Actually if u guys read the news between the line, the investment of silterra new capacity will be sourced from the capital injection of its shareholders, which in this case, it actually means dnex and cgp who own 60% and 40% of silterra.

wow huge force selling around 4pm!

Posted by Hotstuff > Jan 25, 2022 11:15 AM | Report Abuse

no holding power don buy share la...tak malu ke...

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The problem is most retailers have no holding power but buy on contra only. Hence u wait until they cut loss and take their money.

already told u guys contra leg will rush to cut loss

Now is a good time to slowly collect.

waiting for contra leg to cut loss...

see? i told u so.

Sell on news!!!

Gameover, man.

Gameover...

last chance to sell. free falling soon...

gap down on monday!

monday limit down!

free falling fast!