Tech sold down because Trump hammers China tech companies and huawei
Others sold down because Oct loan moratorium over so money will leave Klse to pay loans
Now one class of stocks got support
Palm oil
Because
1. China North East got great flood wiping off its bread basket of corn and soybean
2. Last year China culled pigs due to disease
Pigs need lots of soymeal feed
3. So China will buy more soybean from Usa
4. USA also got drought so less soybean
5. Prices of soybean surged which is very good for palm oil as India cannot buy expensive soybean oil now turn to Malaysia palm oil
6. Plus more people stay home eat more biscuit. Biscuits has high palm oil content as well as Malaysian milo and Kit Kat is full of palm oil. Ofi, Hup Seng, Apollo and Hwatai showed increasing revenue from biscuit sale due to MCO lock down. Many getting slim on palm oil from KitKat, Milo and snacks of biscuit, cakes, ice cream all got high palm oil content
All these will increase sale of palm oil. This trend goes across the globe benefiting more than 3 billion people in more than 200 countries. All Plantation is expected to go into multiyear bull run.
Currently Future Contract is trading at RM 2910.FCPO once break RM 3000 mark, all plantation counter will rocket to the skies. Right now its like trying to break 1st night on my honeymoon.
Boys need to be patience...strategy is to exert pressure...slowly but surely...
Today from my 11 Plantations, only Jtiasa and TDM is not climbing. It's not Red...It's GREY from same finishing from yesterday's closing. Biggest gainer is FGV (>5%) while biggest jump is KLK with 46 sen climbs.
Top 10 reasons why Palm oil stocks will go into a bull run
1. China hit by 3 massive typhoons in its North-West. Heilongjiang the bread basket of China has been flooded. It's soybean crops are destroyed
2. As a result China must buy soybean from Usa.
3. Last year China swine fever wiped off many pigs. Soybean is also needed as feed meal for pigs
3. Us now in drought as soybean production is less.
4. Argentina and Brazil soybean crops won"t be ready until Feb 2021
5. So with increasing demand and dwindling supply soybean prices are rocketing upward
6. Soybean going up will pull up palm oil as their prices are co-related
7. India now has turn to cheaper palm oil as soyoil becomes too expensive
8. Malaysian palm oil stocks are depleting due to lack of Indonesia workers due to mco Again less stock means higher prices
9. Last quarter result of March to May cpo prices were weak. Buy cpo prices have surged from June to August quarters so palm oil stocks are expected to report very good results in Nov 2020
10. Best of the best now in Sept 2020 soybean oil has almost reached Usd35.00 and Cpo future going to cross Rm3,000 barrier
All these converging factors will propel Palm oil Companies into bull run just like coronavirus powered up Medical Gloves
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....
5354_
4,793 posts
Posted by 5354_ > 2020-09-14 10:51 | Report Abuse
CPO RM 2888.