Posted on February 1, 2014, Saturday
Malaysian
palm oil futures ended in a positive state for the second consecutive
day on Thursday, the last business trading day for the week as traders
short-covered ahead of a long weekend holiday as well as in view of a
favourable ringgit currency.Meanwhile, Malaysian palm oil futures dropped to their lowest in almost two weeks on Monday and Tuesday as it was hit by a decline in other vegetable oil prices and fragile equity markets.
The new benchmark crude palm oil futures (FCPO) April contract settled at RM2,559 per tonne on Friday which was down by 32 points from last Friday at RM2,591.
The trading range for the week was from RM2,581 to RM2,519.
Benchmark palm prices had fallen 3.8 per cent this month which was its biggest monthly loss since September last year, as investors worry over sluggish export demand which would fail to reduce palm stocks in the world’s second-largest producing nation.
However, some traders forecasted that demand would rise in the coming months as winter fades and the weather becomes warmer where northern winter had buyers cut down their purchases of palm which solidifies in cold temperatures.
On Monday, Cargo surveyor Intertek Testing Services (ITS) reported that exports of Malaysian palm oil products from January 1 to 25 fell 9.4 per cent to 1,032,104 tonnes from 1,139,705 tonnes shipped during December 1 to 25.
Meanwhile, Cargo surveyor Societe Generale de Surveillance (SGS) reported that exports of Malaysian palm oil products for January 1 to 25 fell 10.5 per cent to 1,017,662 tonnes from 1,137,374 tonnes shipped during December 1 to 25.
Malaysia’s ringgit has weakened even further to 3.3465 against the dollar as it had been hit by worries over China’s slowing economy and further stimulus cut by the US Federal Reserve.
A weaker ringgit improved margins for overseas buyers and refiners where it lifted demand for palm oil, which is used in a variety of household products from soaps to cookies and chocolate.
Technical view
From the chart, price declined to the 2,519 after it failed to test the 2,605 range.
However, price managed to rebound and form a long positive candle, hence we still draw the resistance line which is to be monitored.
If price is unable to rise further to test that resistance level, we expect price will re-test the 2,519 low-level it made last Tuesday.
For the coming week, we pegged our important support levels at 2,520, 2,485 and 2,420.
Meanwhile, for our resistance levels, we pegged important ones at 2,605, 2,670 and 2,690.
Read more: http://www.theborneopost.com/2014/02/01/crude-palm-oil-weekly-report-2-february-2014/#ixzz2sGVPitrv
Business
Palm oil industry to see gradual growth
A worker loads oil palm fruit into a lorry at a local palm plantation
in Shah Alam outside Kuala Lumpur in this November 21, 2013 file photo. –
Reuters pic, February 2, 2014. Malaysian palm oil continues to enjoy encouraging demand in traditional markets, however, growth this year is expected to be gradual as it would depend on the purchasing power of consuming countries, their Gross Domestic Product (GDP) growth, population increase and new markets.
"Demand is factored by population growth and consumption is related to a country's GDP.
"Should GDP increase, one of the first food commodities that they will spend money on is oil and fats," said the Deputy Chief Executive Officer, Malaysian Palm Oil Council, Dr S. Kalyana Sundram.
He cited the good example of India and China where their oil consumption followed their GDP growth.
"Per capita consumption will increase in tandem with the increase in GDP, as the purchasing power improves," he told Bernama in Cebu during a Felda Global Ventures Holdings Bhd's visit to the Philippines.
The council is collaborating with FGV and Intisari Mulia International Inc, a Filipino company, to create awareness and promote Malaysian palm oil among Filipinos.
"In 2014, we are looking for a more gradual increase. Our traditional buyers remain the same but there is growing demand especially from the Philippines and Africa.
"All this will add up slowly and surely, and help us to maintain Malaysia's share of the global edible oil market," added Sundram, who is also MPOC Director for Science and Environment.
He said global economic recovery would positively influence the momentum for palm oil consumption this year.
On the prospects for palm oil in the Philippines, he said the growing population of 97.704 million offered huge business potential in the future.
"The Philippines is a major producer and exporter of coconut oil and traditionally, the people are used to this edible oil in their culinary practices.
"However, the insufficient supply to feed the entire population prompts them to import a large quantity of other edible oils, including palm oil," he said, adding that the Philippines imported more than 500,000 tonnes of palm oil annually. – Bernama, February 2, 2014.
NEW DELHI: Agriculture ministry on Friday issued guidelines and strategy to increase oilseeds production in the country. Focus of the strategy is to increase production of traditional oilseeds and bring more area under oil-palm cultivation through mission mode farm projects.
Government has already sanctioned Rs 3507 crore for implementation of the National Mission on Oilseeds and Oil Palm (NMOOP) in the ongoing 12th Plan period.
At present, oilseed accounts for 13% of the gross cropped area, 3% of the Gross National Product and 10% value of all agricultural commodities. The idea behind this new strategy is to reduce India's dependence on import of edible oilseeds and oil palm.
The strategy to implement the proposed Mission includes: increasing Seed Replacement Ratio (SRR) with focus on Varietal Replacement; increasing irrigation coverage under oilseeds from 26% to 36%; diversification of area from low yielding cereals crops to oil seeds crops and inter-cropping of oilseeds with cereals/ pulses/sugarcane.
Use of fallow land after paddy/potato cultivation; expansion of cultivation of Oil Palm and tree borne oil seeds in watersheds and wastelands; increasing availability of quality planting material enhancing procurement of oilseeds and collection; and processing of tree borne oilseeds are also key components of the strategy. "Inter-cropping during gestation period of oil palm and tree borne oilseeds would provide economic return to the farmers when there is no production", said the agriculture ministry in an official statement.
The scheme will be implemented in mission mode through active involvement of all the stakeholders. The Centre and States will bear costs in the ratio of 75:25.
"Fund flow would be strictly monitored to ensure that benefit of the Mission reaches the targeted beneficiaries in time to achieve the results", said the ministry.
India is among major oilseed growers and edible oil importers. India's vegetable oil economy is world's fourth largest after USA, China and Brazil.
The diverse agro-ecological conditions in India are favourable for growing nine annual oilseed crops, which include seven edible oilseeds (groundnut, rapeseed & mustard, soybean, sunflower, sesame, safflower and niger) and two non-edible oilseeds (castor and linseed).
Oilseeds cultivation is undertaken across the country in about 27 million hectares mainly on marginal lands, of which 72% in confined to rain-fed farming.
During the last few years, the domestic consumption of edible oils has increased substantially and has touched the level of 18.90 million tonnes in 2011-12 and is likely to increase further.
With per capita consumption of vegetable oils at the rate of 16 kg/year/person for a projected population of 1276 million, the total vegetable oils demand is likely to touch 20.4 million tonnes by 2017.
A substantial portion of our requirement of edible oil is met through import of palm oil from Indonesia and Malaysia. It is, therefore, necessary to exploit domestic resources to maximize production to ensure edible oil security for the country.
Oil palm is a comparatively new crop in India and is the highest vegetable oil yielding perennial crop. With quality planting materials, irrigation and proper management, there is potential of achieving 20-30 MT Fresh Fruit Bunches per ha after attaining age of 5 years.
Therefore, there is an urgent need to intensify efforts for area expansion under oil palm to enhance palm oil production in the country.
Tree-borne oilseeds (TBOs), like sal, mahua, simarouba, kokum, olive, karanja, jatropha, neem, jojoba, cheura, wild apricot, walnut, tung etc. are cultivated or grow wild in the country under different agro-climatic conditions. These TBOs are also good source of vegetable oil and therefore need to be supported for cultivation.
Under the guidelines of the ministry, the NMOOP is to be implemented under three mini-missions.
The Mini Mission I, on oilseeds, aims at increasing production from 28.93 million tonnes during 11th Plan to 35.51 million tonnes in 12th Plan. The productivity will rise from 1081 kg/ha during the 11th Plan period to 1328 kg/ha of oilseeds during 12th Plan period.
Mini Mission II, on oil palm, aims at bringing additional 1.25 lakh hectare area under oil palm cultivation through area expansion. Wastelands will also be ustilised for this purpose. The mini-mission seeks to increase productivity of fresh fruit brunches from 4927 kg per ha to 15000 kg per ha.
Mini Mission III, on tree-borne oilseed (TBOs), aims at enhancing seed collection of TBOs from 9 lakh tonnes to 14 lakh tonnes.
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Monday, 03 Feb, 2014
Gradual Growth Seen for Malaysia's Palm Oil Industry
KUALA LUMPUR: While
Malaysian palm oil continues to enjoy encouraging demand in traditional
markets, growth this year is expected to be gradual as it would depend
on the purchasing power of consuming countries, their gross domestic
product (GDP) growth, population increase and new markets.
“Demand
is factored by population growth and consumption is related to a
country’s GDP. Should GDP increase, one of the first food commodities
that they will spend money on is oil and fats,” said Malaysian Palm Oil Council (MPOC)deputy chief executive officer Dr S. Kalyana Sundram.
He cited the good example of India and China where their oil consumption followed their GDP growth.
“Per capita consumption will increase in tandem with the increase in GDP, as the purchasing power improves,” he told Bernama in Cebu during Felda Global Ventures Holdings Bhd’s (FGV) visit to the Philippines.
The council is collaborating with FGV and Intisari Mulia International Inc, a Filipino company, to create awareness and promote Malaysian palm oil among Filipinos.
“In
2014, we are looking for a more gradual increase. Our traditional
buyers remain the same but there is growing demand especially from the
Philippines and Africa.
“All
this will add up slowly and surely, and help us to maintain Malaysia’s
share of the global edible oil market,” added Sundram, who is also MPOC
director for science and environment.
He said global economic recovery would positively influence the momentum for palm oil consumption this year.
On
the prospects for palm oil in the Philippines, he said the growing
population of 97.704 million offered huge business potential in the
future. — Bernama
Source : The Star
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