Posted by calvintaneng > 2016-01-05 01:04 | Report Abuse

Go and Google El Nino news every day to monitor the hottest El Nino on record.

Tell you what?

The implosion and collapse of Us Economy will hit all Malaysian export stocks to USA.

While export stocks only depend on USA palm oil stocks rest on the imminent need of 7 billion people on planet earth. The impending short fall of oil seeds throughout the world due to El Nino and La Nina in typhoons, flood and widespread drought will take up all the stockpiles of palm oil from both Malaysia and Indonesia to feed starving billions!

Hmm?

Just watch what NASA satellite broadcast in coming months.

Posted by fayeTan > 2016-01-05 14:10 | Report Abuse

the timing of this article is very good... despite the bearishness tone of the article, plantation counters went up (Tanah Makmur, Jaya Tiasa, Ta Ann, Kim Loong)... even index counters like IOI and SIME are up...

Posted by mystockdeck > 2016-01-09 16:31 | Report Abuse

We still feel that plantation companies will not see any sunshine soon in the 1H2016. December inventory expected to drop 6% and at the current level of historical high stockpiles and slow export, it's really difficult to drive the palm oil price higher. Cooking oil has high correlation with crude oil (refer to the chart above) and that just make it even harder to decouple from it. The only positive catalyst in the sector is the weakening of ringgit as mentioned that can support the price near term, else it is just a sucker rally as most of the plantation counters has fall back to previous level.