KUCHING: Amid a season of high production and an environment of tightened capacity, refining margins in Sarawak for crude palm oil (CPO) players are improving on the back of shortage issues seen in milling capacity.
OSK Research Sdn Bhd (OSK Research) analyst Gan Jian Bo highlighted that refining margins in Sarawak substantially improved in the final quarter of 2012 which was a stark contrast to the challenging environment seen the quarter before.
Gan noted that the third quarter of 2012 was marked with instances of negative margins for CPO players.
“Moving forward, we believe CPO production growth in Sarawak will continue to outpace that of the country in 2013 due to its relatively late commercial planting initiative (hence, younger trees), exacerbating the mismatch in production and refining capacity,” highlighted Gan.
“So far, Sarawak has five refineries with a total capacity to process 2.4 million tonnes of CPO annually.
“Production within the state topped 2.9 million tonnes in 2012.” Gan went on to note that similar issues were occurring at the milling level as the state government hoped to prevent the milling overcapacity situation seen in Peninsular Malaysia and Sabah.
“No independent millers are thus allowed in Sarawak, with each company needing to operate at least 5,000 hectares (ha) of planted area before being given a license to construct a CPO mill,” the analyst added.
“While the mill would be sufficient to accommodate its own FFBs and some external crops, severe underestimation of FFB production from smallholders within the state (those with less than 5,000 ha planted area) is causing shortages in milling capacity.”
Meanwhile, the OSK Research analyst noted that oil palm planted land was currently going at a cheaper price amid soft CPO prices.
“Asking prices for planted oil palm estates in Sarawak have come off its peak recently amid weak CPO prices.
“A planted peat area previously calling for RM60,000 per hectare (ha) is now available at RM45,000 per ha.
“Unplanted agricultural land prices, in contrast, have risen to RM12,000 per ha from the RM7,000 to RM10,000 per ha seen when CPO prices breached RM4,000 per tonne in early 2008.”
Read more: http://www.theborneopost.com/2013/01/23/sarawak-sees-improving-cpo-refining-margins-shortage-in-milling-capacity/#ixzz2InIYEk55
Wednesday, January 23, 2013
Saturday, January 12, 2013
palm oil stocks rise further in December to 26.3 million tonnes-MPOB
Kuala Lumpur: Malaysia's palm oil stocks rose 2.41 per cent to 2.63 million tonnes in December from 2.56 million tonnes recorded in November, the Malaysian Palm Oil Board (MPOB) said Thursday.
It said crude palm oil (CPO) stocks in December decreased 5.54 per cent to 1.58 million tonnes while that of processed palm oil jumped 17.16 per cent to 1.05 million tonnes.
Palm kernel stocks decreased 13.16 per cent to 187,717 tonnes while that of crude palm kernel oil expanded 5.08 per cent to 286,422 tonnes.
Processed palm kernel oil stocks gained 3.93 per cent to 178,209 tonnes and palm kernel cake stocks increased 2.97 per cent to 312,178 tonnes.
MPOB said the CPO production last month fell 5.86 per cent to 1.78 million tonnes from 1.89 million tonnes recorded in November.
Palm kernel production slipped 6.32 per cent to 447,638 tonnes while crude palm kernel oil output was 3.71 per cent higher at 223,969 tonnes and palm kernel cake production rose 4.58 per cent to 249,070 tonnes.
Palm oil exports declined 0.70 per cent to 1.65 million tonnes last month compared with November while palm kernel oil exports decreased 9.27 per cent to 112,644 tonnes.
It said exports of palm kernel cake fell 24.10 per cent to 205,058 tonnes, oleo chemicals exports rose 5.60 per cent to 226,805 tonnes and bodies exports bolstered 166.66 per cent to 6,300 tonnes.
CPO imports, during the month in review, advanced 11.39 per cent to 54,716 tonnes but processed palm oil imports dipped 9.19 per cent to 32,508 tonnes.
In December, the average fresh fruit bunches price declined 7.65 per cent to RM20.39 per tone. - Bernama
It said crude palm oil (CPO) stocks in December decreased 5.54 per cent to 1.58 million tonnes while that of processed palm oil jumped 17.16 per cent to 1.05 million tonnes.
Palm kernel stocks decreased 13.16 per cent to 187,717 tonnes while that of crude palm kernel oil expanded 5.08 per cent to 286,422 tonnes.
Processed palm kernel oil stocks gained 3.93 per cent to 178,209 tonnes and palm kernel cake stocks increased 2.97 per cent to 312,178 tonnes.
MPOB said the CPO production last month fell 5.86 per cent to 1.78 million tonnes from 1.89 million tonnes recorded in November.
Palm kernel production slipped 6.32 per cent to 447,638 tonnes while crude palm kernel oil output was 3.71 per cent higher at 223,969 tonnes and palm kernel cake production rose 4.58 per cent to 249,070 tonnes.
Palm oil exports declined 0.70 per cent to 1.65 million tonnes last month compared with November while palm kernel oil exports decreased 9.27 per cent to 112,644 tonnes.
It said exports of palm kernel cake fell 24.10 per cent to 205,058 tonnes, oleo chemicals exports rose 5.60 per cent to 226,805 tonnes and bodies exports bolstered 166.66 per cent to 6,300 tonnes.
CPO imports, during the month in review, advanced 11.39 per cent to 54,716 tonnes but processed palm oil imports dipped 9.19 per cent to 32,508 tonnes.
In December, the average fresh fruit bunches price declined 7.65 per cent to RM20.39 per tone. - Bernama
Tuesday, January 8, 2013
Planting density on inland soils
On inland soils, a study indicated that the optimal planting density is about 148 palm/ha in the inland/interior land. As a convention in the industry, the planting density of oil palm on inland soils ranges from 136-148 palm/ha. This study indicated that a lower or higher density than 148 palms/ha does not maximize income.
Maximum income is obtained when oil palm is planted at a density of 148 palm/ha, ceteris paribus. Unlike the results obtained on peat soils, this finding is conclusive and can be used as a guide by planters.
Maximum income is obtained when oil palm is planted at a density of 148 palm/ha, ceteris paribus. Unlike the results obtained on peat soils, this finding is conclusive and can be used as a guide by planters.
Monday, January 7, 2013
CPO Prices To Average Around RM2,900 Per Tonne This Year
KUALA LUMPUR, Jan 7 (Bernama) -- Crude palm oil (CPO) prices are expected to average around RM2,900 per tonne this year supported by strong demand from emerging markets, says Standard Chartered Bank Head of Commodities Research Hsi Han Pin.
"Demand for CPO is expected to increase by 20 per cent over the next two years as we notice persistent growing demand from emerging countries.
"We predict CPO prices will start increasing in the first half of the year and continue to stabilise in the second half.
"It should average around RM2,900 per tonne in 2013," he told Bernama after Standard Chartered's Global Research Briefing 2013.
Hsi said demand would continue to grow as India, a large importer of Malaysian palm oil, had a growing middle-class economy and this would be a key driver for all commodity prices including CPO.
-- BERNAMA
"Demand for CPO is expected to increase by 20 per cent over the next two years as we notice persistent growing demand from emerging countries.
"We predict CPO prices will start increasing in the first half of the year and continue to stabilise in the second half.
"It should average around RM2,900 per tonne in 2013," he told Bernama after Standard Chartered's Global Research Briefing 2013.
Hsi said demand would continue to grow as India, a large importer of Malaysian palm oil, had a growing middle-class economy and this would be a key driver for all commodity prices including CPO.
-- BERNAMA
Saturday, January 5, 2013
8 Months After Field Planting
Maintaining the 8 months oil palm after field planting. Planted 400 new plant in April 2012. Employed 5 workers to do slashing at RM20 per person per day.
Subscribe to:
Posts (Atom)