Have dual plantation stock in portfolio, but, these time, boustead stake is far bigger than jtiasa due to consideration now that Jtiasa still have loss making timber that erode its CPO profit.
Whereas, Boustead plantation have comparable CPO production with jtiasa, but is pure CPO stock. Boustead is top pick, jtiasa is second for trading purpose.
CPO prices has bottom out at RM2757 at up again at RM 2822s level .., price firming uptrend.
Malaysian has Become the Top Palm Oil Supplier to China (Malaysia even beat Indonesia World No 1 Palm Oil Producer)
Malaysia’s palm oil exports to China increased by 31.9% or 316,400 MT over last year to 1.31 million MT from January to June 2020, while Indonesia shipped 1.28 million MT of PO to China, decreased by 42.7% or 956,400 MT. As a result, PO market share commanded by Malaysia in China up to June this year rose from 30.7% held last year to 50.3%, and Indonesia’s share slid to 49.2% from 69.2% for the same period in comparison. Malaysia has become the top PO supplier once again since 2015.
There are several risks factors on any Plantation earnings estimates, price target and rating. Key risks to the palm oil sector are:
(i) weather anomalies resulting in poorer-than-expected output growth -*Let's hope for a good weather the next coming 3 months*.
(ii) lower than-expected CPO price achieved – *On Target and currently CPO is Up trending*
(iii) negative policies imposed by import countries – *Positive*. The exemption of CPO export duty by the government of Malaysia till Dec 2020 will be positive for CPO exports (especially to India) and will help support CPO price which is expected to be under pressure in 3Q20 due to the anticipated stockpile build-up amid seasonal production recovery
(iv) unfriendly policies imposed by the Malaysian and Indonesian government on upstream or downstream segments – *Already factored on India’s move to restrict the importation of refined palm oil*. This will result in quicker build-up of MPOB stockpile when output recovers from 2Q20, and cap CPO price upside
(v) sharply lower crude oil prices which makes palm biodiesel demand not viable – *Brent has already breached USD 40*
(vi) weaker competing oil prices (like soybean and rapeseed- *On Target*. Alternative Oil Prices is on the rise which make Palm Oil very attractive.
The Palm Oil, whose scientific name is Elaeis guineensis Jacq, originates from West Africa. It were first brought into this country by the British in the 1870’s as an ornamental plant in their gardens. However, other countries were already familiar it and its uses. Among the earliest evidences of its usage were • Traces of my ancestors found in burial urns aged 5000 years in Abydos, Egypt • The barter of palm oil for salt centuries ago • A lubricant for engines and in the manufacture of candles, soap and margarine in Europe during the 19 th century.
Palm Oil started to make Malaysia its home on a large scale in the 1960’s. This started when the Malaysian Government introduced a land cultivation scheme for the purpose of planting oil palm trees.The purpose of this scheme was to eradicate poverty and raise the standard of living for the rural population. Today, palm oil grows and flourish in palm oil plantations which can be found throughout the country, from Perlis to Sabah.
For me I any shares also won’t buy..if already bought one just keep for future....I just will keep existing one won’t buy more..perhaps u will thanks me..
The 10.1 holiday in china has resulted massive traveller flow in China, probably due to drop of out-bound travel. Let's see if this will stimulate their restocking on Palm oil when the market reopens on 8th
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....
Shadows
462 posts
Posted by Shadows > 2020-09-23 07:50 | Report Abuse
Gone case? Soyoil is down