msia cpo stock level improved because the oversea buyers temporarily stopped buying and consume their domestic cpo stock only. Nevertheless their stock level wont last long indefinitely. They will eventually start buying again.
If u read the latest release from the cargo surveyor, u will know that they started buying fenzy early this month, which is about 40% more than the same period last month.
Indonesia will soon lift the ban on exports sometime this month. It is not that hard to predict what is coming. As soon as Indonesia is flooded with palm oil, they would want to regain the lost market share from Malaysia. A bigger discount would have to be dished out to regain market share.
At the moment plantation stock are price modestly using sustainable cpo price of Rm 4000 mah!
With the current price above Rm 6000, even if indonesia comeback to the export mkt....that will not affect plantation share price bcos it is not overvalue....as it is not value base on cpo rm 6000 mah!
even with Indonesia lifted the export ban, but palm oil price still will remain high, for extreme cast still be above 4000 rm. per ton, Indonesia till will keep the 30 bio diessel programe,consume 10 million ton CPO per year. domestic food usage take 8 million ton, Availability of oil for export is not too alarming. the figure could be could be 3o-35 million ton region.
Post a Comment
People who like this
You should check in on some of those fields below.
Click Confirm to delete this Forum Thread and all the associated comments.
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....
Posted by calvintaneng > 2022-05-12 06:14 | Report Abuse
Rhb research has given it's argument palm oil prices might not sustain due to Ukraine war ceasing and Indonesia resume it's palm oil exports
These are skin deep assumptions of a bias mind
Why Calvin thinks this is shallow calculations
There are deeper underlying factors why Vege oil is in great shortage
1. River in the Sky factor
The destruction of Amazon forest has released a body of water in the sky....causing havoc as 10 Typhoons hit HEILONGJIANG the Breadbasket of China
(3 Super typhoons reached heilongjiang and JILIN in year 2020....wiping out China's soybean and corn
leading to petrifying fear of a repeat of the 1960s famine
Thus China has stockpiled more than enough food at the expense of all others