Soyabean chart shows that the Soyabean momentum remains within the Bollinger Band. And above the 990 support level. Currently at 1002. If this is kept for another 1 to 2 days ........... Soyabean prices are going to Firm Up. So ..... Hopefully CPO will also recover its recent LOSSES.
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.
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.
Last time sold 50% bplant at 47.5 and then price shot up to max 61, felt that earn lesser. Later price went down to 51.5, sold the remaining 50%. Today, queue and bought at 46.5. Still got good confidence in this stock.
As usual...... Kingmakers/group wants something to happen. But she ..."not agree":. So....Out She goes. Hope something is Brewing to make this counter "Limit Up" ....................... ???
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....
bulldog
12,157 posts
Posted by bulldog > 2020-09-24 04:09 |
Post removed.Why?