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Punter
We are worth more now for them in many ways
Land and property in Malaysia they would live to get their hands on
Plus Indonesia openings are young and ripe for large expansion
They still hold a large stack of shares also
All in good time as per usual
KLK didnt want to pay a full valuation before, I reckon will be lucky to get £11 or £12.
Upwardly mobile company this is
Come on KLK!! 15 pound and we are yours ??
Something afoot
Price monitoring on three trades ???
.....notwithstanding any tariff benefits - H1 crops up 28% + price obtained up 34% on a fairly fixed cost base should equal a much higher share price - but we will have to make do with the 30p dividend while we wait...!!
Indonesia, the world’s top palm oil producing country, has lowered tariffs on exported Crude Palm Oil (CPO) and on derivative products to boost the sales of such goods abroad. The country charges palm oil export tariffs in proportion to international CPO prices, both of which are expressed in US dollars per ton. Finance Ministry Regulation No. 76/2021 raises the international price threshold for the lowest tariff rate – US$55 per ton – from $670 per ton to $750 per ton starting July 2. The regulation was issued on June 25. The regulation also lowers the highest tariff rate from $255 per ton to $175 per ton. “This lower rate will hopefully increase the competitiveness of [Indonesian] palm oil products on the international market,” said Oil Palm Plantation Fund Management Agency (BPDPKS) president director Eddy Abdurr...
This article was published in thejakartapost.com with the title "Lower palm oil tariffs come into effect too boost sales". Click to read: https://www.thejakartapost.com/paper/2021/07/02/lower-palm-oil-tariffs-come-into-effect-too-boost-sales.html.
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Arsenal, see today's RNS from REA about the revised scale of deductions for cpo exports. CPO reference price for July is 1094.15. The Indonesian authorities seem to have lowered the levies on palm derived products too.
Arsenal, yes. The Rotterdam CIF price for CPO was $1,020 on 28th June. One reason they might be able to afford the reduction in levy is because less subsidy is needed to make biodiesel when Brent crude is around $75 a barrel. It will be daft if we have to pay more export levy on a reference price just below $1000 than on one set at slightly over $1000. I expect the authorities will have to re-think the whole scheme as they can't just change one export deduction in isolation from all those set on derived products like palm stearin and olein, surely? We will find out soon enough.
Nobull
It as too pass 1000 bucks a ton before it kicks in
An extra $147 a tonne coming from lower export tax and lower export levy?
https://www.spglobal.com/platts/en/market-insights/latest-news/agriculture/062821-new-indonesian-crude-palm-oil-export-levy-structure-set-to-be-effective-early-july-letter
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade in range-bound mode next week as the market is lacking movement catalysts, a dealer said.
Interband Group of Companies senior palm oil trader Jim Teh said the market projection was made based on the quiet market and no major festival happening in the coming weeks.
He told Bernama that the futures contract is expected to trade between RM3,200 and RM3,300 per tonne.
Palm oil trader David Ng also expects the CPO futures to trade range-bound but with a negative bias, given the prospect of higher production which may increase the overall stock level in the country.
"We estimate the price to trade within a range of RM3,400 per tonne and RM3,650 per tonne,” he said.
Meanwhile, MIDF Research anticipates the CPO price to soften in the second half of the year as production is expected to recover due to better weather conditions, thus leading to higher stockpiles.
Higher soybean production would likely impact the CPO price negatively, noting that the United States Department of Agriculture (USDA) has increased its forecast for Brazilian soybean production by one million tonnes to 137 million tonnes, the research house said.
"High soybean stocks will eventually lead to higher supply of soybean oil (SBO). The CPO price is strongly correlated with SBO as both commodities are commonly used as each other’s substitute in the food manufacturing industry,” the firm said.
For the week just ended, the market closed mostly lower, tracking the weakness on soybean oil in the Chicago Board of Trade and sentiment on weaker exports in the coming months.
On a weekly basis, the July 2021 contract gained RM109 to RM3,702 per tonne, August 2021 recovered RM98 to RM3,601 per tonne, September 2021 earned RM96 to RM3,520 per tonne and October 2021 firmed RM92 to RM3,475 per tonne
Weekly volume was reduced to 381,462 lots from 484,666 lots in the previous trading week, while open interest declined to 234,760 contracts versus 270,605 contracts previously.
The physical CPO price for July South advanced RM50 to RM3,750 per tonne. - Bernama
PETALING JAYA: Upstream oil palm planters and integrated plantation companies with operations in Indonesia are poised to be prime beneficiaries of the republic’s proposal to reduce its palm oil export levies.
Analysts said that overall, these players will get to enjoy higher net receipts from the potential imposition of lower export levies.
Maybank Investment Bank (Maybank IB), which has a positive call on the plantation sector, said local planters under its coverage such as TSH Resources Bhd, Genting Plantations Bhd, Kuala Lumpur Kepong Bhd and Sime Darby Plantation Bhd (pic below) are potential beneficiaries, given their sizeable exposure in Indonesia.
What more can you ask (except a much higher share price!) - Volume up 25%, price obtained up 30% (means much higher profits on relatively static capital cost), dividend expected up to 30p, looking to acquire more land....
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to move higher next week, underpinned by the improving export data.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said this was based on the cargo surveyor Intertek Testing Services data, which showed Malaysia's exports for the May 1-10 period up by 29.63 per cent to 447,225 tonnes from 345,010 tonnes in the same period in April 2021.
Similarly, cargo surveyor Amspec Malaysia stated that exports in the May 1-10 period rose 36.85 per cent to 469,875 tonnes from 343,356 tonnes in April 2021.
"Trading next week will be based on May 1-15 Malaysia export data which is expected to be higher but at a slower pace than May 1-10 data,” he told Bernama.
Meanwhile, palm oil trader David Ng opined that CPO futures is expected to still trade on upward bias given the strong performance in the Chicago bean oil market.
On another note, Kenanga Research projected May’s production growth to increase by 4.6 per cent month-on-month (m-o-m), as Sabah and Sarawak continued their growth trajectory and exports to rise by 19.6 per cent m-o-m ahead of the Hari Raya Aidilfitri festive season and potential stockpiling activities from China and India.
"We expect total demand to outstrip total supply, leading to lower ending stocks of 1.46 million tonnes equivalent to 5.6 per cent m-o-m drop," it said.
CPO was traded for only three days during the holiday-shortened week, in conjunction with the Hari Raya Aidilfitri celebration.
Bursa Malaysia and its subsidiaries were closed from noon onwards on Wednesday, May 12 until May 16, and trading will resume on Monday, May 17.
On a weekly basis, the CPO futures contracts were mostly higher, with only May 2021 declining RM83 to RM4,800 per tonne, June 2021 rose RM71 to RM4,749, July 2021 firmed RM79 to RM4,506 per tonne and August 2021 improved RM68 to RM4,285 per tonne.
With just three-day trading, weekly volume drop to 156,560 lots from 281,343 lots in the previous week, while open interest lost to 228,824 contracts from 277,416 contracts a week earlier.
The physical CPO price for May South was marginally lower by RM10 to RM4,820 per tonne. - Bernama
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CPO , Weekly , Palm Oil , Sathia Varqa , Export Data
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KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to move higher next week, underpinned by th
NOBULL!
You do seem to make life complicated?
Yep I think we are defo in play here.
Yes, I think you are right Arsenal with £4m just gone through!
Yes, but I can't see what the benefits are to KLK except to have a more assured supply of feed stock for its refineries, if it has any, and maybe dilution of head office costs against greater CPO production.
Getting us at a discount to the £10.00 per share Finncap target price that supposedly gives an enterprise value of $18,000 per mature hectare is maybe more difficult with our shares at £7.40. The only other reasons I can think of are director vanity, and maybe earnings surprises from the associate company (change of land use from agricultural to residential housing can yield high one-off profits, I wonder?). JMV.
[KUALA LUMPUR] - Malaysia's state-owned palm oil company Felda will make another offer to buyout FGV Holdings Bhd, the Edge Weekly reported on Saturday, despite a failed takeover attempt last month.
The Federal Land Development Authority, or Felda, said in March that it had only obtained 81 per cent equity interest in FGV - the world's largest crude palm oil producer - at the end of the offer deadline.
Felda is "firm in its plan" to take over and privatise the plantation company, and is expected to make a fresh offer six months or more after the previous bid, the Edge Weekly reported, citing economy minister Mustapa Mohamed.
"The takeover of FGV and its privatisation will guarantee a more sustainable business model and income stream for Felda, which is currently discussing with FGV plans to strategise FGV businesses and reorganise FGV's group structure to optimise returns for Felda, especially for the settlers," Mr Mustapa said, referring to the farmers.
Felda and FGV did not immediately respond to requests for comment.
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives may see volatile trading next week, ahead of the release of production, stocks and exports data.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said markets will closely monitor the Malaysian Palm Oil Board's (MPOB) data, which is due on Monday.
In addition, investors are also awaiting April 1-10 projections by cargo surveyors, which are likely to be released next week.
"Focus will be on March production. However, prices are likely to be firmer but volatile," he told Bernama, today.
Earlier this week, Sathia said global demand and export for palm oil products will see strong recovery from April to June 2021, mainly from India and China, which are severely understocked at the moment.
He said China's stocks have been in deficit for many months with the latest data showing stocks being in deficit by 27 per cent.
Meanwhile, palm oil trader David Ng expects CPO prices to trade within a negative bias of between RM3,650 and RM3,850 per tonne.
During the week, the CPO market was mostly higher with stronger exports estimation for March by some research houses.
CGS-CIMB expects palm oil exports to grow 25 per cent month-on-month in March 2021, likely due to stronger demand from India as a result of restocking activities and attractive discount against other competing edible oils ahead of Ramadan.
Data by the Southern Peninsula Palm Oil Millers' Association (SPPOMA) showed that output had dropped six per cent for the April 1- 5 period versus the March 1-5 period.
On a Friday-to-Friday basis, CPO futures contracts were mostly higher, with April 2021 surging RM133 to RM4,280 per tonne; May 2021 increased RM108 to RM4,055 per tonne; June 2021 rose RM30 to RM3,767 per tonne; while July 2021 fell RM19 to RM3,554 per tonne.
Weekly volume fell to 276,736 lots from 323,794 lots the previous week, while open interest increased to 260,493 contracts from 232,463 contracts a week earlier.
The physical CPO price for April South jumped RM140 to RM4,300 per tonne from RM4,160 per tonne on Friday last week. - Bernama
TAGS / KEYWORDS:
CPO , Palm Oil , Bursa Malaysia Derivatives ,
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RNS today is the proof it was a buy smpunter
Arsenal58, thank you I certainly hope you are correct.
Smpunter
That 3 million could have been a buy
The 8.39 trade and 8.43 were buys at 632.5 were buys they were mine
They say there NAV is 10.99 now KLK will take them out this year for 10.99 plus 20% and grab the 40% in the Malaysian building company
Thanks Nobull I never knew about the new shareholders.