PUTRAJAYA (Feb 6): Malaysia will discuss with Indonesia to formulate the best strategy to protect the oil palm industry of both countries in the near future, said Plantation Industries and Commodities Minister Datuk Dr Mohd Khairuddin Aman Razali.
He said this was in line with Prime Minister Tan Sri Muhyiddin Yassin's call for the framework of the Council of Palm Oil Producing Countries (CPOPC) to be strengthened to protect the common interests of member countries, particularly Malaysia and Indonesia.
"I will discuss with my Indonesian counterpart, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, to formulate the best strategy to protect the oil palm industry of both countries in the near future," he said in a statement here today.
The CPOPC was established jointly by Malaysia and Indonesia on Nov 21, 2015 to champion issues related to the palm oil industry.
Mohd Khairuddin said Malaysia would continue to work with Indonesia to oppose discrimination on palm oil either in a two-way or multi-party relationship.
He said Indonesia and Malaysia, which are the largest and second-largest palm oil producer countries in the world respectively, were also constantly seeking to reach an agreement in developing and maintaining the palm oil industry in both countries.
Mohd Khairuddin said the Ministry of Plantation Industries and Commodities welcomed the call by the prime minister during a meeting with Indonesian President Joko Widodo (Jokowi) in Jakarta yesterday to further strengthen Malaysia's cooperation with Indonesia to oppose discrimination on palm oil by European Union (EU) countries and several other countries.
He said the two leaders had expressed concern over the unfounded anti-palm oil campaign which did not reflect the sustainability of the palm oil industry and its preservation of environment. The campaign also contradicts the principles of free trade practices as outlined by the World Trade Organization (WTO).
Following that, Muhyiddin said Malaysia had filed for legal action against the EU with the WTO on Jan 15, in line with the statement issued on the same day as soon as the filing was done, apart from a similar action taken by Indonesia on the EU in December 2019.
I doubt the IBs know much about agriculture and lack of professionalism in their reporting. They are still forecasting average CPO for 2021 at $2,500-2,600! Unbelievable!
Yes, FFB production is bad, it’s industry wide issue for Jan I think... Feb will be more or less same as it’s a short month, Mar onwards will recover... hopefully CPO can maintain at this level if not better till Q3
FFB production is always lower in 4th qtr and 1st qtr of the year due to seasonal factor . Nothing to be alarm of this physiological part of oil palm . Yield for full year can swing 5-8% due to climatic factors like rainfall, sunshine etc . Other factors that may affect production are largely within management control . As such, it is not FFB production that we should be too overly concerned. The focus should be CPO price . At today's price of $3,700-3,900, the impact of any drop in annual production is easily offset and the planters are still laughing to the banks !
Agriculture commodities bull run is gaining traction and will show up in the next few qtrs results. It’s a global development like we had experienced in 2011-2012 . Ample liquidity, very low interest rates, pent up demand from covid recovery , low inventory level and unfavorable climate are all perfect ingredients for a super bull in agriculture commodities.
Small cap planter's are unpolished gems in commodities boom. Just sit tight. In addition { most planter's stocks are either family owned or tightly help} sharks cannot play pump and dump tactics. this is one of the main contributing factor. Despite rising CPO average prices most counters only in recovery mode unlike the gloves stocks
KUALA LUMPUR (Feb 17): Kuala Lumpur Kepong Bhd (KLK) posted a net profit of RM357.41 million in its first quarter ended Dec 31, 2020 (1QFY21), more than double the RM167.2 million it recorded in the previous year’s corresponding quarter, driven by a jump in plantation earnings.
Revenue rose 5.45% to RM4.3 billion from RM4.08 billion, supported by growth in revenue across its manufacturing, plantation and property development segments.
Earnings per share (EPS) rose to 33.1 sen from 15.7 sen, its stock exchange filing today showed. No dividend payment was proposed.
The group said its plantation segment's profit surged 83.3% to RM288.9 million during the quarter, driven by improved crude palm oil and palm kernel prices, and better contribution from its processing and trading operations.
Its manufacturing segment's profit also grew 67.2% to RM133.7 million, largely contributed by its operations in China and Europe, coupled with an unrealised gain from fair value changes on outstanding derivatives contract of RM14.5 million.
Meanwhile, profit recognition from projects with better margins helped boost the group's property development segment by 62.2% to RM22 million.
Moving forward, the group expects its plantation profit to continue to improve in FY21, driven by buoyant CPO and PK prices, while its oleochemical division's performance — which has been satisfactory — is expected to be challenging.
“Overall, the group's profit for the financial year 2021 will be higher,” it said in a statement.
Shares of KLK closed 16 sen or 0.70% lower at RM22.76 today, valuing the plantation company at RM24.6 billion.
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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....
Alex.C
16 posts
Posted by Alex.C > 2021-02-03 11:55 | Report Abuse
will start collect at 0.5 to 0.525