MARKET DEVELOPMENT
CPO Price To Trade Between RM2,600-RM2,800 In The Next Six Months
CPO Price To Trade Between RM2,600-RM2,800 In The Next Six Months
01/06/2017 (Bernama) - Sime Darby Bhd is expecting crude palm oil (CPO) prices to trade between RM2,600 and RM2,800 in the next six months, said President and Group Chief Executive Tan Sri Mohd Bakke Salleh.
He said the spot price was still hovering around RM2,700 per tonne while forward month August was trading around RM2,500 per tonne.
"As such, we are of the view that CPO prices, over the next few months, would move between RM2,600 and RM2,800 per tonne with the support seen around RM2,500 per tonne.
"Hence, we reckon that the price would not drop below RM2,500 per tonne at least for the next six months," he told reporters during a briefing on the group's third quarter financial results here today.
As for production, the group expected an increase of between three and four per cent in the last quarter of this year compared with the corresponding period last year, he added.
Mohd Bakke said the group's results, year-to-date, was largely supported by higher CPO prices which averaged about RM2,861 per tonne compared with RM2,113 per tonne in the same period last year.
On the proposed listing of its plantation and property division, he said the listing exercise, scheduled for year-end, was on track and the group was expected to submit relevant documents to the authorities by the third quarter of this year.
Despite the lacklustre performance of its property segment, the group was optimistic that both companies can be listed by year-end.
The property segment was affected by consumer sentiment and the stringent availability of financing, he said, adding that the group registered a lower profit of RM376 million for the first nine months of this year compared with RM771 million recorded previously.
Mohd Bakke said the group was now in the midst of identifying land bank belonging to its property division which did not have much potential to be developed with satisfactory profit margins, for divestment purposes.
The property segment currently had a land bank of about 6,878 hectares with potential for development over the next few years.
The company was also looking at injecting some land bank, belonging to its plantation division, into the property segment, he said.
The plantation division had 122,619.75 hectares in its land bank while 28,327 hectares were allocated to the Malaysian Vision Valley, it said.
The transfer of these land bank was expected to be done before the group submitted relevant documents for the listing excercise and this would help position the property division on a strong footing, he added.
He said the spot price was still hovering around RM2,700 per tonne while forward month August was trading around RM2,500 per tonne.
"As such, we are of the view that CPO prices, over the next few months, would move between RM2,600 and RM2,800 per tonne with the support seen around RM2,500 per tonne.
"Hence, we reckon that the price would not drop below RM2,500 per tonne at least for the next six months," he told reporters during a briefing on the group's third quarter financial results here today.
As for production, the group expected an increase of between three and four per cent in the last quarter of this year compared with the corresponding period last year, he added.
Mohd Bakke said the group's results, year-to-date, was largely supported by higher CPO prices which averaged about RM2,861 per tonne compared with RM2,113 per tonne in the same period last year.
On the proposed listing of its plantation and property division, he said the listing exercise, scheduled for year-end, was on track and the group was expected to submit relevant documents to the authorities by the third quarter of this year.
Despite the lacklustre performance of its property segment, the group was optimistic that both companies can be listed by year-end.
The property segment was affected by consumer sentiment and the stringent availability of financing, he said, adding that the group registered a lower profit of RM376 million for the first nine months of this year compared with RM771 million recorded previously.
Mohd Bakke said the group was now in the midst of identifying land bank belonging to its property division which did not have much potential to be developed with satisfactory profit margins, for divestment purposes.
The property segment currently had a land bank of about 6,878 hectares with potential for development over the next few years.
The company was also looking at injecting some land bank, belonging to its plantation division, into the property segment, he said.
The plantation division had 122,619.75 hectares in its land bank while 28,327 hectares were allocated to the Malaysian Vision Valley, it said.
The transfer of these land bank was expected to be done before the group submitted relevant documents for the listing excercise and this would help position the property division on a strong footing, he added.