if palm oil price touches 2.700 per tonnes, sop stock price would reach 3.00 -4.00 rm, or even beyond, currently is rock bottom good price to enter. moreover with on going trade war,less import of soyabean/oil , china is experiencing rampant inflation, coupled with recession ,most chinese consumers would go for cheaper palm oil .
industrial sourse said Indonesian biodiesel domestic consumption is seen to rise from 6.2m kiloliters to 9.4m-9.6m kiloliters,EU bio-diesel is only about 1.6-2 million tonnes.
if klcpo can break 2600 , basis, february delivery, then next month 2700 is reachable, as production usually is the lowest in the last quarter of the year.at this time seen strong break upward.
MUMBAI (Nov 14): Indian refiners have resumed buying Malaysian palm oil after a gap of nearly a month and contracted around 70,000 tonnes of shipments in December as Kuala Lumpur has been offering a US$5 per tonne discount over supplies from rival Indonesia, five traders told Reuters on Thursday.
The resumption in purchases by India, the biggest buyer of Malaysian palm oil this year, could support Malaysian palm oil prices, which are trading near their highest level in two years.
Indian refiners stopped purchases from Malaysia last month fearing New Delhi could raise import taxes or enforce other measures to curb imports after Kuala Lumpur criticised New Delhi for its actions in Kashmir.
Malaysian palm oil is available at a US$5 discount amid congestion at Indonesian ports, said a Mumbai-based dealer with a global trading firm. "This is giving a few buyers a reason to start buying Malaysian oil in small quantities to run their refineries."
Indian has refiners which need to run almost 24 hrs to cover the cost of refinery.. Where could they get big supply.. Only Indon & Msia.. Doing business with Indonesia is not easy.. Esp this kind of business.. A lot of cheating in the specs.. So the Indians are trying to play game only...
@Mabel , india used to buy huge amount of palm oil from indonesia in the past years, but due to B30 biodessel program in Indo,supply to India tends to be tight, thus india turns to buy more of refined palmoil from malaysia, that is why , the price of Kcpo keep climbing from low of 1900 /tonne increased to 2690 ringgit per tonne today, and while our plantation stocks still using the old average 2000-2200 ringgit to project their quarterly ,and yearly earning, which is absolutely out of step ,and being ridiculous.for now. another reports suggest indo B30 ,may goes up to B50by June 2020. if B50 implemented , global supply of palm oil will be very tight.This is going to have long term implication, not just short term ,seasonal fluctuation.
note:B30,B50 is biodessel mix with 30%,50% palm oil in the vehecle-fuel.
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yfchong
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Posted by yfchong > 2019-08-26 16:15 | Report Abuse
Why never drops another 20 cts....