Posted by Jonathan Keung > 2016-03-10 09:35 | Report Abuse

prices may go higher but the speakers ( Dorab & James Fry ) far too gung ho on their price projections. we need to factor in the reduced demand from China and INdia ( the world's two biggest user ) Bio-diesel will remains muted (despite government mandatory blending ) still funding & subsidies need to provide for bio-diesel production. US and Europe has more or less dropped Bio-fuel from their agenda. Car manufacturers are now moving in the direction of Electic ( EEV direction ) this is my personal take

Posted by calvintaneng > 2016-03-10 09:43 | Report Abuse

One Missing factor YOU MUST KNOW

El Nino & Especially Coming LA NINA WILL WIPE OFF SOY BEANS EVERYWHERE!

There won't be competition from Soy Oil going into 2017/2018 When LA NINA Arrives!

It takes Palm Trees to mature 5 long years before harvest. It will be Standing Tall for the Next 25 Years. It can withstand EL NINO & LA NINA

The same Cannot be said about Soy beans. It is grown and harvested the same year.

El Nino will dry them up by severe drought. Then LA NINA Will Wipe them off by Sweeping Floods.

So PALM OIL WILL SHINE WITH INCREASING BRIGHT PROSPECTS!

Posted by calvintaneng > 2016-03-10 09:46 | Report Abuse

Optimism will last through

Year 2016

2017

All the Way to Year 2018

Posted by Beza > 2016-03-10 09:49 | Report Abuse

It always subject to supply and demand. No body know the actual demand (only guessing) until it happens.

Posted by Jonathan Keung > 2016-03-10 09:56 | Report Abuse

Calvin. i am not bearish on the plantation outlook but just put in my 2 cents worth. THe windfall tax on plantations will kick in if the average price is above RM 2,250 per tonne for Peninsular Malaysia and RM 3,000 for East Malaysia. The rate is set between 4.5 % - 8.5% ( which means the Government will enjoy a sum of between RM 112 - RM 200 per tonne of CPO produced ). The planters also have to bear the increased cost of levy for foreign workers ( from RM 590 increased to RM 1,500 per head ). The minimum wage will be increased to RM 1,200 ( from RM 900 ) starting from 1st July. What i am saying not all plantation(s) will enjoy the full benefits. only the more efficient one will derive more compared to the less efficient ones

Posted by fayeTan > 2016-03-11 07:35 | Report Abuse

Jonathan, the windfall tax starts at RM2500/tonne for Peninsular Malaysia not RM2250/MT

Posted by fayeTan > 2016-03-11 07:37 | Report Abuse

there's also other errors in your statement. the key thing is CPO price uptrend will be beneficial to plantation companies... no need complicated math as any investors know this simple rule