Despite the ban the domestic price in indonesia will still remains high because of domestic shortage. So, it is still a handsome profit for indo planters.
Of course, without doubt pure msia planters will outperform those with some palm oil fields in indonesia.
LOL. Only fools think that people will die due to shortage of palm oil. Humans survived for hundreds of thousands of years without palm oil. They continue living without palm oil, alternatives are plenty. Cost will not be a matter.
Why Malaysian government did not ban export of palm oil to tackle domestic cooking oil price hike and shortage? --------------------------------------------------------------------------------------------------------- because msia government does not hv deep pocket to give up the 8% export duty on cpo. Now it is a perfect time for them to earn back whatever they spent on covid in last 2 years.
Banning export shall flood the local Indonesian market with CPO and thus automatically drive local selling price for cooking oil , biodiesel and all consumer products containing palm oil to very low level. Jokowi is resolved to cushion the hardship face by his people due to hyperinflation and at tge same time reduce government subsidies in cooking oil and fuels. Such move , if it is prolonged is bad for plantations in Indonesia.
The beneficiaries are 100% Malaysia based plantations such as Taann, SOp, swkpltn, MHC, cepat, HSplant, Kmloong etc. Better stick to Malaysia based plantations . Indonesia frequent come with policy surprises and it’s no good for business.
On the other hand, it will reduce export revenue and it's economy for Indonesia. For how long Indonesia can afford to continue with the export ban that remains to be seen.
this calvintaneng really makes a lot of enemies from other stock forum. tat y this dick, plantationgameover and calviniswrong keep retaliate with nonsense :)
Ban oil export mean no need to deliver to client anymore?
Yes Exporters can now declare a force majeure in a legal attempt to escape contractual liability and obligation by applying the elements of (1) unforeseeable event, (2) outside of the parties' control, that (3) renders performance impossible or impractical
Ok to give u a good picture on palmoil ban by indonesia;
Indonesia producer can only sell domestically at Rm 3500 to Rm 4500 loh! Their production cost is Rm 1500 to Rm 2000 loh! Still making good profit but much less loh!
Msia producer can sell Rm 6500 to Rm 7500 mah! Msian producers cost at Rm 2000 to Rm 2400, can make super abnormal profit loh!
Besides WTK, Fima Corp and K.Fima and other stocks with oil palm plantations are not listed as plantations counters. Will they continue with the other plantation stocks uptrend from tomorrow that remains to be seen.
Yes western countries still use ESG to downplay palm oil but but due to super shortage they are quietly buy a lot. Malaysia March export palm oil showed that europe increase import 48% palm oil from Malaysia. They have no choice.
No intention to shorten the Ukraine war but the gain from their weapons sales can still be used to compensate for the purchase of soybean oil and canola oil at record price? This maybe true I guess.
Globally, palm oil supplies 40% of the world's vegetable oil demand on just under 6% of the land used to produce all vegetable oils.
The Western World out of their self interest come out with all unfound issues: health, sustainability, deforestation, ESG and etc to suppress palm oil because they know their seasonal vegatable oil crops were and are not competative compare to palm oil.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
lionel messi
673 posts
Posted by lionel messi > 2022-04-23 12:20 | Report Abuse
Local plantation companies will fly.