June palm oil stocks decline 4.33 pct to 2.15 million tonnes

KUALA LUMPUR: Malaysia's total palm oil stocks in June 2015 declined 4.33% to 2.15 million tonnes against the 2.25 million tonnes recorded in the previous month.

In a statement today, the Malaysian Palm Oil Board (MPOB) stated that  crude palm oil (CPO) stock for June decreased 14.55% to 1.10 million tonnes against 1.29 million tonnes previously.

Processed palm oil stock grew by 9.42% to 1.05 million tonnes in May. 

Total CPO production eased 2.58 per cent to 1.76 million tonnes at end-June against 1.81 million tonnes recorded previously.

Exports of biodiesel for June was significantly higher at 22,670 tonnes, up 1,625.67 per cent from 1,314 tonnes previously.

Export of palm oil increased 5.19% to 1.697 million tonnes compared to 1.613 million tonnes in May.

Meanwhile, import of CPO for June rose by 8.40% to 79,396 tonnes compared to the previous month, while palm oil imports inched up 2.36% to 103,496 tonnes.

The average fresh fruit bunches (FFB) price in June was quoted at RM23.66 per tonne, up 4% from RM22.75 per tonne previously.- Bernama

35 months old oil palm AAR Seedling

My 35 months old AAR clon oil palm.

My three years oil palm

My three years old oil palm start bearing fruit.

Price increase to RM429 per metric tonne

KUALA LUMPUR: Malaysian palm oil futures hit a three-month high on Tuesday,extending gains into a fourth straight session, buoyed by an overnight rally in soyoil markets and a weak ringgit. 
    The U.S. July soyoil contract climbed almost 8 percent over the last two sessions, lifted
by increased biodiesel targets by the U.S. Environmental Protection Agency - a move that may spur consumption of the edible oil. 
    Echoing the rise, the August palm oil contract on the Bursa Malaysia Derivatives
exchange rose as much as 2.4 percent to 2,349 ringgit ($635.38) a tonne  intraday, its highest since March 5. Prices settled 0.8 percent higher at 2,312 ringgit by the day's close.
    Total traded volume stood at 40,716 lots of 25 tonnes each, above the average 35,000 lots.      
    "The market is rising because of the strength in soybean oil, with the ringgit assisting the
rise," said Chandran Sinnasamy, head of dealing at LT International Futures in Malaysia, adding that palm has entered a new range between 2,250-2,400 ringgit. 
    "At the moment everything looks supportive. Palm may fall for correction in an overbought chart,but will be well supported between 2,280-2,300 ringgit," he said.         
    Palm prices, also supported by a drop in the ringgit to seven-week lows, have jumped
more than 10 percent from a trough of 2,121 ringgit reached on May 25. A weak ringgit makes palm a cheaper option for overseas buyers. 
    Technical charts show palm oil is expected to break resistance at 2,346 ringgit and rise to the next resistance at 2,385 ringgit, driven by an extended wave C, according to Reuters market analyst Wang Tao. 
  
    The U.S. soyoil contract was at 34.32 U.S. cents a pound by 1015 GMT, down 0.6 percent, while the most active September soybean oil contract on the Dalian Commodity Exchange was up 1.3
percent.
    In other markets, oil prices rose on Tuesday as the dollar weakened and on expectations that
OPEC producers would maintain their group production target at current levels and resist pressure for an increase.    

34 Months after field planting

My palm after 34 months of field planting.

Sarawak Oil Palm Planted Area targeted 2 million ha by 2020

KUCHING: The state’s plantation sector is poised for growth as Affin Hwang Investment Bank Bhd (Affin Hwang Capital) believes Sarawak can increase its oil palm planted area to two million hectares (ha) through the Sarawak Corridor of Renewable Energy (SCORE).

The firm in its overview report on the state yesterday reiterated the SCORE hopes of increasing the oil palm planted area to approximately two million ha by 2020 from approximately 1.3 million ha as at end-2014.

It was however unclear what proportion of the land available for development is peat, which would be increasingly difficult to develop due to sustainability issues aor consumer requirements, it said.

“Both Sarawak Plantations Bhd (Sarawak Plantations) and Sarawak Oil Palms Bhd (SOP)have plans to increase their areas planted with oil palm,” it divulged in the report yesterday, adding that increasing the scale of operations and yield to lower cost of production are critical to planters, who are effectively price-takers.

Sarawak Plantations, the firm said, has been seeing low yields over the past few years which was further impacted by encumbered estates.

“Poor plantation management, inability to harvest on estates affected by disputes and extreme weather conditions contributed to the downtrend in fresh fruit bunch (FFB) yield since 2005,” it observed.

“Plantation management issues are however being addressed to raise yields. Other strategies to drive growth include accelerated replanting and acquisition of 5,000ha of greenfield or brownfield lands per annum.”

Its current share price implies an extremely low earnings value per ha of land bank, Affin Hwang Capital added.

Looking at SOP, the firm estimated that its estates, milling, refining, kernel crushing and biodiesel currently has a good-sized land bank of 72,653ha of which 63,530ha are planted.

“We estimate the average age of palms at just above 10 years. The group is an integrated plantation company, having expanded into refining in the third quarter of 2012 and biodiesel production in 3Q14. Production of phytonutrient is expected to commence in 3Q15,” it added.

“A key growth driver is its rising FFB production as more areas reach maturity and prime age. Rising production will also contribute to lower cost of production of CPO.

“Refining operations are currently at the breakeven level compared to losses in 2014 while improvement in blending facilities will help drive demand for its biodiesel.”

All these led Affin Hwang Capital to maintain a neutral stance on the plantation sector based on its crude palm oil average selling price assumption of RM2,400 per metric tonne for 2015 and RM2,500 per metric tonne for 2016 to 2017. It retained its stock recommendations.

Read more: http://www.theborneopost.com/2015/03/24/sarawaks-plantation-sector-poised-for-acerage-growth/#ixzz3VIk5b9s4

Rubber Block Planting

The rubber block planting scheme is one of the National Key Economic Areas (NKEA) initiatives mooted by Prime Minister Datuk Seri Najib Tun Razak to help raise the income of the people.

“I believe the scheme will generate a high income as a hectare of high quality rubber can generate an average monthly income of RM1,500,” he said during an earth-breaking ceremony for a rubber block planting scheme at Rumah Nicholas Egai, Lengain, near here last Friday.

He said more local farmers would participate in the scheme when they realise the potential of rubber as a major commercial crop, because demand in the world market is expected to increase.

Jelaing added that participants from Ulu Sebetan, Empalaie, Awas, Bila Dua, Sungai Bangkong and Lengain have already registered for the programme.

The high quality rubber planted under the programme, he said, is expected to mature and be ready for tapping in six years’ time.

Read more: http://www.theborneopost.com/2013/03/24/saratok-gets-rm12mln-for-rubber-block-planting/#ixzz3UV4O5MHb