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Last Updated: 12 June 2024

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SINGAPORE: Malaysian palm oil futures rose Tuesday, reversing midday losses, as lower rapeseed projections overshadowed U.S. soybean ratings, which were as expected.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 14 ringgit, or 0.36%, to 3,933 ringgit ($833.79) a metric ton.

In its first production estimates for this year’s harvest, France’s farm ministry projected the winter rapeseed crop at 4.2 million tons, down 1.2% from 2023.

Dalian’s most active soyoil contract slid 1.7%, while its palm oil contract lost 2.69%. Soyoil prices on the Chicago Board of Trade slipped 0.48%.

The USDA’s soybean crop ratings were in line with trade expectations. Soybean conditions were rated 72% “good-to-excellent” in the USDA’s first ratings of 2024 for the oilseed.

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

While a weak ringgit is currently supporting palm oil prices, lower Malaysian exports expected in June have “capped the gains for upside” in the near term, said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co.

Palm gains on firm crude but logs weekly decline

Cargo surveyors Intertek Testing Services and AmSpec Agri said exports of Malaysian palm oil products for June 1-10 fell 20.4% and 21.6%, respectively, compared to May 1-10.

Cargo surveyor Societe Generale de Surveillance, however, estimated exports for June 1-10 at 347,045 tons, up 31.8% from 263,369 tons shipped during May 1-10.

The ringgit, palm’s currency of trade, strengthened 0.04% against the dollar after declining 0.66% on Monday.

Palm oil may fall this week towards the support levels of 3,850-3,870 ringgit per ton, with resistance at 3,980-4,000 ringgit, LSEG said in a report.3 technologies identified to boost palm oil production, cut reliance on foreign labour

https://www.brecorder.com/news/40307913

Sumber : Business Recorder

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Last Updated: 12 June 2024

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KUALA LUMPUR (June 11): Malaysia’s stockpile of palm oil may continue to swell in the coming months on seasonal strength in production and weigh on prices, analysts cautioned.

At least seven research houses maintained their neutral view on the plantation sector following the release of palm oil stocks data by the Malaysian Palm Oil Board (MPOB) that showed a 0.5% month-on-month expansion in inventory for May.

Output will likely peak at the end of June or by the third quarter, supported by improving weather conditions and productivity, BIMB Securities said. Demand could be subdued as palm oil is still trading at a small discount against more expensive substitute soybean oil, the research house said.

Prices of the edible oil used in everything from lipstick to diesel have climbed about 5% so far this year as poor weather conditions in key producing nations Malaysia and Indonesia stoked concerns over output and potential tightening in supply.

The benchmark palm oil contract for August delivery was trading at around RM3,887 per tonne on Bursa Malaysia Derivatives on Tuesday. However, prices are down 12% from a high of RM4,407 per tonne on April 3.

Further, strong shipments in May are at risk from Indonesia's move to cut palm oil-related tariffs in June, which will reduce the export tax to US$18 (RM84.99) per tonne and the levy to US$75 per tonne. All in all, the move could lower export costs by US$49 per tonne compared to the previous month.

Malaysia is losing competitiveness in palm oil exports, TA Securities warned. If production stays at its current robust pace, it would lead to burgeoning palm oil stockpiles and potentially limit the upside, the research house said.

TA Securities would also review its current forecast for crude palm oil to average RM4,000 per tonne in 2024 if South America's soybean supply turns out to be lower than expected, demand recovers more meaningfully, and production costs fall significantly.

MPOB data released on Monday showed palm oil inventory totalling 1.75 million tonnes in May in the world’s largest palm oil producing nation after Indonesia, as higher exports and domestic consumption were more than offset by higher output.

Production surged 13.5% from April to 1.70 million tonnes in May, the biggest in six months. Exports, meanwhile, rose to a six-month high of 1.38 million tonnes, up 11.66% from April, the MPOB said.

For strategy, MIDF Amanah Investment Bank said now is the best time for investors to lock in profits for its top picks, such as Ta Ann Holdings Bhd (KL:TAANN) and IOI Corp Bhd (KL:IOICORP), "as we anticipate the increase in share price will gradually decline towards the end of the quarter”.

TA Securities, BIMB, and MIDF have a ‘neutral’ outlook on the sector.

https://theedgemalaysia.com/node/715012

Sumber : The Edge Malaysia

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Last Updated: 07 June 2024

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Malaysia has announced a plan to send orangutans to its major palm oil trading partners, in an effort to demonstrate its dedication to conserving the endangered species – but the strategy is being called out before it’s even begun.

The announcement was made by Malaysia’s Plantation and Commodities Minister Johari Abdul Ghani at a biodiversity forum that took place in early May. Though the precise details of the plan aren’t yet clear, it would involve sending orangutans as a “gift” to countries that import palm oil.

“By introducing 'orangutan diplomacy', it directly proves to the world community that Malaysia is always committed to biodiversity conservation,” Ghani later wrote on X, likening the plan to China’s “panda diplomacy”. Much like China is the only place in the word where wild pandas live, orangutans are only found in Borneo and Sumatra. 

“Malaysia cannot take a defensive approach to the issue of palm oil, instead we need to show the countries of the world that Malaysia is a sustainable palm oil producer and is committed to protecting forests and environmental sustainability,” he continued.

Palm oil is pretty much everywhere; according to the World Wildlife Foundation (WWF), it’s in nearly 50 percent of the packaged products found in grocery stores, from foodstuffs like chocolate and pizza to the shampoo and lipstick found in the health and beauty aisle. 

However, the demand for palm oil has also led to large-scale deforestation on the island of Borneo (partly governed by Malaysia), home to the Bornean orangutan. Considered as a critically endangered species, its continuing decline has largely been attributed to the destruction of its forested habitat.

In an effort to combat deforestation and the loss of biodiversity that comes with it, the European Union (EU) last year introduced a law to end the import of products containing palm oil – amongst other commodities – that comes from deforested land. Malaysia, the second-biggest exporter of palm oil in the world, called the law “unjust”.

With Ghani suggesting the EU could be in line to receive an orangutan, the diplomacy plan could be seen as a response to the law’s introduction.

However, the newly announced plan hasn’t gone without criticism.

“It is obscene, repugnant and extraordinarily hypocritical to destroy rainforests where orangutans live, take them away and give them as gifts to curry favor with other nations,” said Stuart Pimm, chair of conservation ecology at Duke University, speaking to CNN. “It totally goes against how we should be protecting them and our planet.”

WWF-Malaysia also released an op-ed in response to the plan, suggesting it wasn’t the best way to go about protecting the species and tackling declining biodiversity.

“WWF-Malaysia is of the opinion that a more effective way for biodiversity and orangutan conservation is through improving forest management, prioritising in-situ orangutan conservation, supporting sustainable palm oil production, and increasing international fundings for conservation efforts in developing countries,” the piece reads.

“Rather than sending orangutans abroad, this approach ensures the survival of the species and promotes responsible conservation practices and sustainable production.”

https://www.iflscience.com/orangutan-diplomacy-malaysias-new-plan-to-give-endangered-primates-to-palm-oil-partners-74547

Sumber : IFLScience

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Last Updated: 07 June 2024

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KUALA LUMPUR: Malaysia should take advantage of its recent cooperation with Egypt by establishing an oil hub or redistribution centre, according to the Malaysian Palm Oil Board (MPOB).

Its director-general Datuk Dr Ahmad Parveez Ghulam Kadir emphasised the mutual benefits of the initiative, highlighting the promising results from the current mission, which underscored both nations' eagerness to cooperate in investments within the agro-commodities sectors and bulking facilities.

"By leveraging Egypt's strategic position and ability to re-export to neighbouring countries, Malaysia can consider establishing a hub for Malaysian palm-based downstream products at one of Egypt's major ports.

"This will enable us to provide the required palm-based downstream products to the industry promptly and efficiently," Ahmad Parveez told Business Times.

The proposed hub in Egypt would serve as a vital link in the distribution chain, ensuring timely delivery of palm oil products to markets in the Middle East and North Africa.

"This can also encourage small quantity imports by Egyptian industry members directly from Malaysian exporters, thus eliminating the additional cost of dealing with a third party," said Ahmad Parveez.

In addition, Ahmad Parveez said Malaysia could establish its distribution hub in the Suez Canal Economic Zone (SCZONE), which provides facilities that could enhance the market presence of Malaysian palm-based products in the region.

Therefore, he said the Malaysian oil palm industry could consider investing in bulking facilities in Egypt to gain market share in this region.

"Egypt, with its unique geography, has high potential to be an economic and industrial hub, linking Europe, the Middle East and Africa - a unique trade triangle connected to the world via the Suez Canal.

"Additionally, Egypt is a key participant in some of the world's most prominent trade agreements such as African Continental Free Trade Area, the Common Market for Eastern and Southern Africa and Egypt Free Trade Agreement, to name a few," he said.

Moving forward, Ahmed Parveez said Malaysia should explore investing in higher-value retail products of the downstream sector in Egypt.

This can be achieved through partnership arrangements and strategic alliances with local partners in the market.

"These initiatives could be joint efforts between Malaysian palm oil stakeholders and the Egyptian Businessmen's Association (EBA), enhancing and strengthening the importance of the oil palm industry and other commodities like timber and rubber in contributing to Egypt's economic and social development productivity," he added.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani recently led a Malaysian delegation to Egypt and Turkiye for a working visit from May 27 to June 1.

In Cairo, he was received by Egypt's Supply and Internal Trade Minister Dr Ali El Moselhi.

During his visit, Johari discussed with Dr Ali to strengthen bilateral cooperation between the two countries as well as business leaders in the palm oil industry.

He said Egypt will remain Malaysia's key trading partner as the government sets to expand its palm oil exports to South Africa and the Middle East.

""I am confident that Egypt's strategic geographical location would enhance our nations' economic prosperities.

"In our discussions, I emphasised to the Egyptian government regarding Malaysia's commitment to providing Egypt with a steady supply of high quality and sustainable palm oil certified by our locally-developed certification standard, MSPO.

"I look forward to further cooperating with His Excellency Dr Ali to ensure mutually beneficial trade relations," he said in a posting on X.

https://www.nst.com.my/business/corporate/2024/06/1059914/mpob-calls-setting-oil-hub-redistribution-centre-egypt#google_vignette

Sumber : New Straits Times