Will India buy more palm oil from Malaysia? Yes. Will China buy more palm oil from Malaysia? Yes. Will biodiesel gain more ground? Yes. Will corn oil, peanut oil, soy oil price sustainable? Yes. Will Ringgit depreciate further against RMB and USD? Yes. Will inflation round the globe manageable around 5% in 2021? No. Very unlikely. Inflation surely will exceed 5% in Malaysia in 2022. Will salary of estate workers, lorry drivers, oil mill workers increase by 5% in 2022? Very definite. Will estate land appreciate in price near term, medium term, and long term? Yes.
iron ore productions can increase anytime of existing mine area.oilpalm tree must wait at least 4years with yeild less.you are right ,oilpalm prices may face correction.us and china trade problem destroy the supplies chain,spurred inflation up a lot.even oilpalm prices will face correction, but it won't go back to the beginning.
When the cpo too high price.... demand will reduce accordingly, follow by market the price adjustment due to more production output.. same for glove price cycle..
“High palm oil prices should start to bite into demand and we believe the outlook for consumption in 2022 deteriorated somehow in recent months. We see global consumption growth slowing down in 2022 to 2.7% year-on-year (y-o-y), compared with our forecast back in August of a 3.4% growth in consumption in 2022, and with a 3.4% growth expected for this year.
“In particular, we have revised down our India's palm oil consumption forecast,” it said.
Of course cpo price is not sustainable like any other commodity example steel, gold, silver n oil once they reach a break recording level, that's expected but over the long run, palm oil price is on the uptrend, mind u. So how accurate is kyy assessment, I am not sure, maybe he had his own reasons which we don't know.
don'tbe silly, when palmoii price went bellow 1000, small holders would let the ffb rot on the trees. production cost at ordinary time is around 2000, now labour shortage , complicate the cost issue.
anythings above RM3000 will be good price to plantation companies.and unlike glove,share price of plantation companies did not rise much even CPO rally rise from RM2500 per ton to RM5000.so whats could possibly goes wrong even CPO fall back to RM4000 per tonnes?
1. As I repeatedly explained to Calvin, CPO increased doesn't mean corporate profit increase. Labour shortage, production challenges etc pushes up cost and lower yield.
2. Next problem will be even more expensive fertilizer. Fertilizer is more expensive than feed and will be in shortage soon enough. No fertilizer, no oil palm.
3. Maybe those strong players like HSP and IOI can be considered. Others susah sikit.
Outlook & Prospects Palm oil commodity prices are expected to remain volatile in the next financial year. Many factors affecting the prices are to be closely monitored. The current low world vegetable oil stocks will continue to provide the underlying support to the prices. The recovery in stocks depend on the coming production in the producing countries. Weather conditions are one of the many factors to look out for, especially in the US, in the coming crop progress. The COVID-19 pandemic is still affecting demand in many consuming countries and disrupting the production in producing countries. The inoculation rates that are picking momentum in many countries will help to mitigate some of the challenges. Another factor to watch out for is the heightened Business Performance Review 2021 inflationary risk in global economies. Central banks of many countries are sounding more hawkish and this may lead to the imposition of higher interest rates and the adoption of tighter monetary policies in order to rein in the inflation. Having integrated Environmental, Social and Governance (“ESG”) into our business, we are confident that our ESG investing will lead us to overcome the rising interest cost. Going forward, we opine that palm oil prices will remain strong for some time due to lower inventories in both origin and destination market. The palm oil stocks may take longer to replenish to normal levels due to severe worker shortage in Malaysia, disruption from the pandemic and the forecasted La Nina phenomenon towards the end of 2021.
If I'm ceo of large plantation company, I will keep the workforce and palm oil output at current level rather to put in more fertiliser and workers for 20% more output, while selling price of palm oil drop 50% due to over supply
Brazil's 2021-22 soybean output forecast at record 140.7 million mt: Conab
Global supply of the oilseed in 2022 is likely to be ample as a result; Brazil is the leading producer and exporter of soybeans, accounting for more than a third of the world's soybean production.
Aiyah, just because he hasn't bought ma....... in 2 months time when the cop touches Rm6000 , he will say he bought a lot...... Cunny fellow, last bull on plantation he asked people to sailang on Jtiasa when the price is 2.50rm. Haha.... please listen to him and sell, he will buy.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3139 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
abang_misai
2,550 posts
Posted by abang_misai > 2021-10-31 16:03 | Report Abuse
Kns uncle.
Steel workers also back to work lah. Uncle is blind or what? Only see the plantation workers back to work after pandemic. Hehe