Palm oil futures point to higher settlement today

palm oil close higher today at 2,330 per ton

A total of 366 petrol kiosks in Sarawak, Sabah and Labuan will be selling B7 palm oil biodiesel from the end of this month.

The use of biodiesel B7 in Sabah, Sarawak and Labuan would increase the total usage of the palm oil biodiesel to 576,000 tonnes throughout country a year as the fuel had been fully implemented in Peninsular Malaysia.

Read more: http://www.theborneopost.com/2015/01/17/b7-biodiesel-to-be-sold-in-sarawak-sabah-labuan-from-end-of-january/#ixzz3P93BNr1g

EPF already start buying back FGV on the 13/1/2014 and today. http://www.bursamalaysia.com/market/listed-companies/company-announcements/1853873

Indonesian crude palm oil output is estimated to have fallen around 6 percent in December from
November. Both Malaysia and Indonesia suffer lower output, palm oil price will go up further.

Today palm oil settlement closed at 2385. FGV is a good proxy for palm oil stocks as it is also index link stock. I am holding for 3 months and not surprise to sell it at 3.00. Who can give you 40% returns in 3 months?

Falling oil price is actually good for USA. Tell me what is the logic of high oil price towards economy? This is actually 2nd time oil war between US and Saudi back in 1986. And in 1986, US markets went into superbull as the spill effect of cheap oil. I think tonight US markets will go into rally with failing oil price. As for Malaysia, we are okay as palm oil price will cushion effect of crude oil slide. Palm oil export ccntribute 35% of Malaysia GDP.

I feel vindicated that rally in palm oil has contributed to klci strong rebound. Today I further add TSH beside FGV to enjoy the bounty from plam oil stocks.

Today I reenter FGV at 2.16 after selling at 2.25. I read Public Invest latest report that gave trading buy to 2.70 on FGV. I advise those who are brave enough to buy at current oversold position.

Klci should be relatively on bottom as price of palm oil is on increase now. FGV is definitely going to rebound very strong, hope that I am right about this. AS for crude oil, it is no secret the price war between US, Russia and Saudi to maintain world market share. This is temporarily until affected parties curb their output and Saudi already stated that they won't crub output. Uneasiness of slumping crude oil is there but with rising palm oil, hope we enjoy klci steady growth from here on.

Previously both crude and palm oil were year low but looking at better prospect of palm oil, hope that palm oil stocks will be in favourite again.

Tq Fssraptor. Hope I am right with palm oil stocks to push klci into bullish phase. FGV is one of the 30 index link stocks, and with current 6 months high, it is highly probable that FGV will help klci change current bearish mode

One of the reason for low palm oil was because of high crude oil. Why is there a relation? Many have misunderstood the role of palm oil, many see palm oil as cooking oil. This is gross misconception. Palm oil is use extensively in all our daily product. Without palm oil, shampoo, lipstick, margarine, can foods will not be possible to be mass produce. However, high crude oil has also affected our disposal income. With lower crude price, consumptions will definitely increase world wide. In fact demand for palm oil has increase evident with 5 months stock low. And with recent flood, this supply level will only get worse. Hence, price of palm sustainable for a medium term. For past 2 months, crude oil reduce to 50% prior to usd100. This is good for Malaysia as we are using imported crude oil hence lower cost of production further, lower cost of living hence translate into more disposal income for daily goods which use plenty of palm oil.

Tq Ricky. I went into furniture stocks after reading that weaker ringgit benefit this sector. I made good gains from Latitud, Homeritz and Hevea. However, I start to sell furniture stocks and bought my first palm oil stock FGV and already made a little gain before selling it last Friday. But I will buyback again this Monday after price of palm oil now in 6 months high. I am also going into TSH, TDM before taking position into other palm oil stocks. I hope I am right to buy into palm oil stocks before other realise it.

Everytime crude oil price fall, klci also follow suit. However this pattern no longer hold as price of palm oil is not 6 months high. And as soon as investors both foreign and local notice that this, klci will need to catch up with USA market which is major oil producer but react oppositely. Like I said in 1986, oil was only trading at usd10 yet US market gain a superbull period. Malaysia is only in no. 37 in oil producing countries and contribute less than 1% to world demand, why is klci now the world worst market? I believe klci is undervalue and hence klci will continue to push higher, superbull perhaps?

That is incorrect Imck. Flood areas indeed affect palm oil output hence the increase in cpo these weeks, however, Sabah, Sarawak and Kalimantan are now palm planters main areas. In fact major output of Malaysia planters no longer in Peninsula. Palm oil price is now 6 months high due to tight supply and another news is that soy supply also tight due to prolong winter. Many of us don't realise that palm oil contribution to government is higher that palm oil. Petronas contribution is not affected if Petronas postpone its exploration investment and from what i know Petronas already doing so. It is already clear that current rout in crude oil is temporarily due to market share fights between 3 major oil producers(Russia, Saudi and USA). And note that this is not the first time oil price war broke out, this is actually 2nd oil price war since the 1st oil price war of 1986. And interesting to note that in 1986 the biggest bull run ever occur. And if you collerate both 1986 and 2015, it is no surprise that US is in another repeat of superbull. Are we too late to notice or miss these superbull?

I advise you to buy into palm oil stocks. Soy oil price has suddenly gone up due to prolong winter and tight supply of palm oil. We may see a rally in palm oil stocks.

I have said before that sustain palm oil price will help klci go further north. And my investment in FGV has been proven correct. Last Friday I manage to sell FGV at 2.25. However I will buyback this Monday. I think klci will go further up this Monday as palm oil price recorded a further new high and look sustainable for months to come. Furthermore, a prolong winter in soy bean producers expected to drastically reduce output for medium term. Malaysia depend on palm oil rather than crude oil, this is where I realise foreign even local funds completely made a wrong view of klci.

Sustain upward of palm oil price will help klci rebound north. Price of crude oil now is secondary

Can you furnish calculation on how you arrive at rm1.60 per liter?

Posted by andychucky28 > Jan 7, 2015 03:40 PM | Report Abuse

Ya ya with the low quality petrol we are using, our RON95 should be less than rm1.60 per liter.

Do you know USA is 3rd biggest oil producer in the world?

Looking at palm oil price and benefit of weaker ringgit, I am looking into palm oil counters beside FGV. Please give you opinion?

Hopefully klci will rebound well tomorrow as markets sentiment overall are good. Even US futures are positive now

Many are very ignorant that we produce and use our oil. This is misconception, 100% of oil produce in Malaysia are exported due to price difference. Malaysia has high quality oil used by developed countries whereas Malaysia is importing low quality oil from Saudi for domestic use. Our import of oil is much higher that export. Please check

Today bought into FGV which is the at best entry price at 2.14

Studies shown that price of palm oil reduce for 16 months due to inflated price of crude oil. And recently we can see that price of palm oil has drastically increase to new high

Hope more will be well inform investors here. The price of palm oil is significant to Malaysia where as price of oil contribute less. In fact further reduction to oil price will only benefit Malaysia more

Hope that palm oil will rise further. Rise in palm oil will contribute significant to Malaysia

I think you got your infor wrong dragonking. Malaysia export all it's oil and what we use are 100% imported oil. KLCI is 100 index link counters not 30 index link

At RM2,284 a tonne yesterday, crude palm oil (CPO) futures contract on Bursa Derivatives, which is quoted in ringgit, has risen 18.4% from the recent low in August.

Would like to highlight good news on palm oil industry. Weak ringgit contribute toward higher revenue for palm planters. And the recently flood seen 5 months low on stock as well.

http://www.thestar.com.my/Business/Business-News/2015/01/07/Boon-for-oil-palm-planters-Weak-ringgit-translates-to-higher-revenue-for-companies/?style=biz

The point that I want to highlight is Malaysia depend on palm oil than oil. Please check on latest palm oil now year high

Gross misconception on Malaysia role in global oil supply. From statistics, Indonesia and India contribute 1.6% to global oil demand compare to Malaysia at only 0.8%. Malaysia contribution to oil demand is insignificant, so how to you relate PETRONAS to Malaysia?

Please find this link on oil production by countries http://en.wikipedia.org/wiki/List_of_countries_by_oil_production

For the record, we are using 100% imported oil

Indonesia oil export is larger that Malaysia. Please check

Can you explain Malaysia is PETRONAS? Are you implying Malaysia is like Saudi that depend 100% on oil?

Perception on oil price is grossly misunderstood. Malaysia only depend on 30% oil export. Malaysia domestic and cost of business depends on imported oil. Now that imported oil is 50% lower this translate into lower cost of production, transportation etc. What should be affected are those related to export oil sectors and not overall sectors. 80% of stocks in klci for example are not related to oil. Compare to Indonesia market that able to separate oil related sector with non related sector, klci has fair badly.

Indonesia JKSE already rebound 0.5% and now reaching year high. Why is Malaysia klci similar to Indonesia suffer badly? Indonesia also depend on 30% oil export and world largest palm oil exporter.

oil at 40 already taken into account. today all rebound well except klci.

The only market in red now is klci compare even to Singapore already rebound well. Hope klci will rebound soon

Diesel price is 30c lower per litre. For those in transportations business know every cent counts and 30c will go back to their profit margin. This is major savings for them

ron97 price now are lower to ron95 just few months ago. and ron95 price now equal to 5 years ago. now we enjoy better disposal income especially those in manufacturing, construction etc

Oh, I just check out palm oil and it is now quite well

Malaysia is 2nd largest palm oil exporter, so Malaysia rely on palm oil more

Malaysia oil export is only 30% maybe less

Oil prices have gone down by 30c-35c, this savings will go into disposal income for us all. This is good for economy not only for us but for whole countries. As far as I know only Saudi produce 40% of oil consume by the world compare to less than 1% from Malaysia.

Malaysia economy is improving because disposal income increase, saving from oil toward consumption. Oil export from Malaysia is very minimal, please check with all oil producers, Malaysia not even on the list

Wrong information from you KCLow, klci will move upward instead of down on oil & ringgit.

With revise oil price on 1st January, cost of productions, transportation etc are much lower. Benefits for economy and hence klci moving upward, Malaysia export of oil is very minimal impact