massive flooding in china,destroyed crops, as the result ,they should import more palm oil and related products.,orders should come by one or next two months time.
these analysts talked about the price of CPO,, should not chase up too high, currently 2800rm , or higher that may not last , that is reasonable, 2500--2600 , be more reasonable, at these price , plantation houses, still fetched good profit, as the prodiction cost ranged between 1800-2000.
JAKARTA (July 23): Palm oil stockpiles in Indonesia, the world's top grower, will probably plunge to their smallest in 16 months by the end of July as production hits the lowest in more than two years after floods in major growing regions disrupted the harvest and delivery of fruit to mills.
Reserves are forecast to fall more than 10% from a month earlier to three million tons, according to the median estimate from five analysts and plantation executives compiled by Bloomberg. Production will drop 8.3% to 3.54 million tons from an estimated 3.86 million tons in June, the survey showed.
meanwhile, bursa announcements show SOP is able to increase production yoy.
so the indon's predicament is propping up prices, while SOP mthly statistics show that it is able to increase production yoy to capture the rally in palm prices.
SOP is managing it well. SOP has now become an efficient intergrated plantation company after years of transformation and its still on going especially towards automation. Rank no 7 in term of size. Cheapest valuation in the market.
KUALA LUMPUR: Despite the current crude palm oil (CPO) price rally, the momentum may not be sustainable in the fourth-quarter of this year as stockpile is expected to rise during the peak production period.
PublicInvest Research has revised its average CPO price to around RM2,500 per tonne in 2020 from RM2,300 per tonne previously to account for the rise in the year-to-date price of the commodity.
With the upward adjustment to its CPO price assumption, it has also raised its price-to-earnings ratio valuations across the companies under its coverage by two times to reflect improved outlook compared with the pre-movement control order period.
PublicInvest Research liked upstream plantation companies, as their earnings are more sensitive to the fluctuation in CPO movements.“Upstream producers will be more sensitive to CPO prices as margins will at least double on the back of stronger sales as well as a sharp decline in CPO production cost.
“Almost all plantation companies under our coverage recorded stronger fresh fruit bunch (FFB) production on a year-on-year and quarter-on-quarter basis with Sarawak Plantation Bhd seeing the strongest FFB production growth of 47.4% year-on-year, ” it said.“Our sensitivity analysis suggests that a RM100 per tonne jump in CPO prices will see earnings recover by as much as 10% to 20%.”
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Posted by skyea > 2020-07-22 15:22 | Report Abuse
cepatwawasan june results out.