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Last Updated: 05 December 2023

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MUMBAI (Dec 4): India's palm oil imports in November jumped more than a fifth from the previous month, as refiners favoured the tropical oil, due to steep discounts compared to rival soyoil and sunflower oil, five dealers told Reuters on Monday.

Higher purchases by the world's biggest importer of vegetable oils could help lower palm oil stocks in top producers Indonesia and Malaysia, and support benchmark futures.

India's November palm oil imports jumped 22% from a month earlier to 867,000 metric tons, the highest in three months, estimates from dealers showed.

The discount on palm oil to soyoil and sunflower oil has been widening over the past few weeks, encouraging refiners to switch to palm oil, said Sandeep Bajoria, the chief executive officer of Sunvin Group, a vegetable oil brokerage.

Higher palm oil imports lifted India's total edible oil imports in November to 1.13 million metric tons, up 13% from a month earlier, dealers said.

Edible oil stocks in the country have surged close to a record high, prompting refiners to liquidate port stocks before making fresh orders, said Rajesh Patel, a managing partner of edible oil trader and broker GGN Research.

Domestic stocks of vegetable oil jumped to 3.1 million tons by Nov 1 from 2.45 million a year earlier, said trade body Solvent Extractors' Association of India, which is likely to publish its data on November imports by mid-December.

Soyoil imports in November rose 7% from a month earlier to 145,000 tons, but far below average imports of 306,000 tons in the last marketing year, dealers estimated.

Soyoil imports have been declining for the past two months due to negative refining margins, its hefty premium over rival oils, and an increase in local supplies, said Vipin Gupta, the CEO of Dubai-based trader Glentech Group.

Sunflower oil imports fell by 21% to stand at 122,000 tons, the lowest in 17 months, dealers said.

India buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.

https://theedgemalaysia.com/node/692559

Sumber : The Edge Malaysia

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Last Updated: 22 November 2023

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SINGAPORE, Nov 21 (Reuters) - Malaysian palm oil futures rose for a second session on Tuesday amid signs of an increase in Chinese soy demand, although easing exports and a stronger ringgit capped the gains.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange rose 53 ringgit, or 1.5%, to 3,988 ringgit ($852.50) a metric ton in morning trade.

FUNDAMENTALS

* China's soybean imports from Brazil rose 71% in October from a year earlier, data showed on Monday, boosted by cheaper prices following a bumper crop in the South American nation.

* China imported 4.81 million metric tons of the oilseed from Brazil last month, according to the General Administration of Customs.

* Dalian's most-active soyoil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 was up 1.2%. Soyoil prices on the Chicago Board of Trade BOcv1 climbed 0.3%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Exports of Malaysian palm oil products for Nov. 1-20 were seen down around 2% compared with the same period a month ago, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia showed on Monday.

* The Malaysian ringgit MYR=, palm's currency of trade, strengthened 0.43% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.

* Palm oil is biased to revisit its Nov. 16 high of 4,043 ringgit per metric ton, as suggested by its wave pattern, said Reuters technical analyst Wang Tao. TECH/C

MARKET NEWS

* Oil futures eased on Tuesday, reversing the previous day's rally, as concerns over weaker demand amid a slowing global economy outweighed the prospect of deepening supply cuts by OPEC and its allies such as Russia. O/R

* Weaker crude oil prices make palm oil a less attractive option for biodiesel feedstock.

DATA/EVENTS (GMT)

1500 US Existing Home Sales Oct

1900 US Federal Open Market Committee issues minutes from

its Oct. 31 - Nov. 1 meeting

($1 = 4.6780 ringgit)

cpo https://tmsnrt.rs/3R7lM5B

https://www.nasdaq.com/articles/vegoils-palm-extends-gain-amid-robust-china-demand-for-soyoil

Sumber : Nasdaq

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Last Updated: 22 November 2023

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KUALA LUMPUR: As the European Union (EU) deforestation rule (EUDR) approaches its December 2024 compliance deadline, all hands must be on deck to ensure that palm oil products may continue to enter the EU market after the rule takes effect, said RHB Investment Bank Bhd (RHB IB).

Governments must make sure definitions are in line and the issue is not transferred while businesses make every effort to comply, it said.

According to RHB IB, more established businesses will be able to comply with EUDR by the deadline.

"We believe the bigger and more established players will do better in complying with the EUDR by the deadline, taking advantage of the potential gap filled by the smaller palm oil suppliers.

"Our buys for EUDR readiness are Kuala Lumpur Kepong with a target price (TP) of RM25.80, IOI Corp Bhd with a TP of RM4.80, Golden Agri with a TP of SG$0.30 cents, Bumitama Agri with a TP of SG$0.70, and Wilmar International Limited with a TP of SG$0.40 cents," it said in a note today. 

While there are a myriad of problems and issues in complying with the EUDR guidelines based on current regulations, RHB IB believes there are also numerous solutions. 

The Malaysian and Indonesian governments working together with the EU to find solutions is a step in the right direction, especially if Malaysia and Indonesia are classified as "low-risk.". 

"Aligning definitions is key to achieving compliance and ensuring everyone is on the same page," it said.  

At the end of the day, if the EU fails to help producing countries like Indonesia and Malaysia comply with the EUDR, it will push producers to export more of their commodities to countries with weaker environmental regulations, thereby shifting the problem to other regions. 

However, a short-term solution would be to ensure that whatever is sold to the EU is produced in segregated mills and refineries and traceable to plantations.

"This could mean redirecting smallholder crops that are not traceable to other mills to ensure there is no mixing of crops in each plant," said RHB IB.

As smallholders manage 40 per cent of plantation areas in Indonesia and Malaysia, this sector will only progress if they are taken care of and well updated with the changes in laws and regulations. 

As discussed previously, the main hurdle to achieving traceability lies in obtaining data from third-party suppliers, including smallholders.

Therefore, in order to address this, continuous engagement with the smallholders is essential to educate them on the importance of establishing a sustainable business, and the necessary tools must be given to the smallholders to help them achieve these goals.  

"However, we note that there are some outliers that have yet to make any improvements to environmental, social, and corporate governance (ESG) disclosures as well as ESG targets.

"We have made several changes to our ESG scores, which have altered the TPs for the stocks under our coverage. However, no changes have been made to our stock recommendations or our earnings estimates. 

"Hence, we maintain a neutral recommendation with a tactical trading strategy," added RHB IB.

https://www.nst.com.my/business/corporate/2023/11/980747/ensure-palm-oil-goods-continue-enter-eu-once-new-law-takes-effect

Sumber : News Straits Time

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Last Updated: 21 November 2023

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Deputy Prime Minister and Minister of Plantation and Commodities Datuk Seri Fadillah Yusof (centre) while witnessing the Awarding of MSPO Certificate to Grand Oils and Fats (Dongguan) Co Ltd to the Chief Executive Officer Mohd Shahari Idris (third left) and Chairman of Grand Oils and Foods Robert Xu Qiang (third right) after a High Level Roundtable Meeting with Major Stakeholders of Palm Oil at China Hall Pudong November 14, 2023. Also present are Deputy Minister of Foreign Affairs Datuk Mohamad Alamin (second, left) and Chairman of Malaysian Palm Oil Board Datuk Mohamad Helmy Othman Basha (left). — Bernama pic

BEIJING, Nov 20 — Malaysia has a huge potential to cement its presence in China’s market for palm oil and palm oil-based value-added products over the next three to five years while reducing further its dependence on the European market, said the Malaysian Palm Oil Board (MPOB).

Chairman Datuk Mohamad Helmy Othman Basha acknowledged that China’s import volume of the commodity from Malaysia has slowly declined in recent years, but said that Malaysia is now focusing on exporting more value-added products to the country.

"This is what we are (seeking) right now. We have no problem with Indonesia exporting a big volume of crude palm oil worldwide.

"As for Malaysia, we want them (China) to import higher value-added products (from us) and we are seeing an improvement (in this area) year-on-year,” said Mohamad Helmy, who was part of a palm oil promotion mission to China headed by Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also Plantation and Commodities Minister.

He said the Palm Oil Research and Technical Service Institute of Malaysian Palm Oil Board (PORTSIM), founded in 2005, has created between three and eight new value-added products using palm oil annually to cater to Chinese consumer needs.

"Chinese consumers now are very sophisticated. They require better health products, better nutrients and, of course, sustainable products, and our sustainable palm oil is the answer. So we are on the right track,” Mohamad Helmy said.

He also said Chinese food and non-food manufacturers are currently facing a shortage of tallow (animal fat) for their products, and there is potential for Malaysia to replace that with palm oil.

Meanwhile, Malaysian Palm Oil Council chief executive officer Belvinder Sron said China is more conscious about environmental, social and governance requirements because it is exporting to other countries.

"We are in a good position to help China meet that demand because we already have our Malaysian Sustainable Palm Oil (MSPO) certificate (which) is a competitive edge we have against other palm oil producing countries,” she said.

She urged Malaysian companies to be more aggressive in penetrating the Chinese market with its 1.4 billion population and to make frequent visits to be closer to their buyers.

She said there are untapped opportunities in both the food and non-food sectors.

Belvinder said the future expansion strategy for Malaysian palm oil will be in Asean.

"But China and India will remain our prime markets. Next will be the Middle East market and the African continent.

"We cannot (rely) on the European Union when it is coming out with so many regulations that are impacting our exports,” she said.

Malaysian Palm Oil Certification Council chief executive officer Mohd Shahari Idris, also part of Fadillah’s delegation, said Malaysia could no longer open new plantations due to restrictions relating to the European Union Deforestation Regulation (EUDR).

"We really have to work on how we can add value in terms of oil extraction rate. One way to do that is by using good planting materials.

"Apart from that, we should not let the loose fruits go to waste but should collect and put them to good use.

"They can help raise the oil extraction rate, but we must incentivise workers collecting these detached fruits because these were not collected previously,” he said, adding that fruits become detached from the bunches when the bunches ripen.

Meanwhile, concluding his mission to China, Fadillah said China has committed to raising its palm oil imports to 3.4 million tonnes next year versus the estimated 3.14 million tonnes so far.

He also described this visit as the most successful palm oil mission for 2023. Fadillah also went to the EU and Kenya to promote Malaysian palm oil.

China has been Malaysia’s largest trading partner for the past 14 years.

Agri-commodity exports to China comprised 12.8 per cent (RM26.46 billion) of Malaysia’s total agricultural commodity exports in 2022, an increase of 11 per cent from 2021.

Palm oil-based products and palm oil exports to China totalled RM16.41 billion and RM8.44 billion, respectively, in 2022. — Bernama

https://www.malaymail.com/amp/news/money/2023/11/20/malaysia-to-cement-presence-in-china-via-value-added-products-says-mpob/103074

Sumber : Malay Mail