MARKET DEVELOPMENT
Affin Research Maintains \"Neutral\" on Plantation
Affin Research Maintains \"Neutral\" on Plantation
11/09/2013 (The Star) - Affin Research has maintained “Neutral” for the plantation sector and stock calls, of which most are at “Reduce” ratings, it said.
Affin said it continues to hold its 2014 to 2015 crude palm oil (CPO) average selling price (ASP) forecast of RM2,700 per metric tonne, predicated on the implementation of the B10 biodiesel policy and a firmer global economic outlook.
It said pal, oil closing stocks in August 2013 remained flattish, increasing by only 0.1% on-month to 1.67 million metric tonnes as exports grew by 7.4% on-month compared to a 3.6% on-month increase in CPO production.
“Domestic usage is estimated to have declined by 72,400 metric tones after surging in June and July 2013 ahead of the Ramadhan festivities,” it said.
Affin said In August, CPO production increased by a moderate 3.6% on-month and 4.3% on-year to 1.74 million metric tonnes.
“As palms should have higher seasonal yields, we believe CPO production growth in the month was affected by reduced harvesting activities as migrant workers returned to their home countries for the Ramadhan holidays,” it said.
The research house said in the month, fresh fruit bunches yield improved on-month and on-year while oil extraction rate increased on-month but declined on-year, resulting in higher oil yield.
“Of the three regions, Sabah recorded the highest increase in oil yield. Year to date, total CPO production amounted to 11.8 million metric tonnes, amounting to 62.4% of Malaysian Palm Oil Board’s (MPOB) full year forecast of 18.9 million metric tonnes and 3.3% ahead of MPOB’s forecast for eight months 2013,” it said.
Affin said palm oil exports in August 2013 grew by 7.4% on-month and 5.6% on-year to 1.52 million metric tonnes.
“Compared to July 2013, growth in exports to China PR and the EU, mainly Netherlands, Italy, UK and Spain, were partly offset by lower exports to India, Japan, Pakistan and USA.
Year to date, palm oil exports are up 7.3% as prices remain competitive and also to compensate for tighter soybean stocks in first half 2013. By product, biodiesel exports have surged to 114,414 metric tonnes in the first eight months from 28,983 metric tonnes in 2012
Affin said it continues to hold its 2014 to 2015 crude palm oil (CPO) average selling price (ASP) forecast of RM2,700 per metric tonne, predicated on the implementation of the B10 biodiesel policy and a firmer global economic outlook.
It said pal, oil closing stocks in August 2013 remained flattish, increasing by only 0.1% on-month to 1.67 million metric tonnes as exports grew by 7.4% on-month compared to a 3.6% on-month increase in CPO production.
“Domestic usage is estimated to have declined by 72,400 metric tones after surging in June and July 2013 ahead of the Ramadhan festivities,” it said.
Affin said In August, CPO production increased by a moderate 3.6% on-month and 4.3% on-year to 1.74 million metric tonnes.
“As palms should have higher seasonal yields, we believe CPO production growth in the month was affected by reduced harvesting activities as migrant workers returned to their home countries for the Ramadhan holidays,” it said.
The research house said in the month, fresh fruit bunches yield improved on-month and on-year while oil extraction rate increased on-month but declined on-year, resulting in higher oil yield.
“Of the three regions, Sabah recorded the highest increase in oil yield. Year to date, total CPO production amounted to 11.8 million metric tonnes, amounting to 62.4% of Malaysian Palm Oil Board’s (MPOB) full year forecast of 18.9 million metric tonnes and 3.3% ahead of MPOB’s forecast for eight months 2013,” it said.
Affin said palm oil exports in August 2013 grew by 7.4% on-month and 5.6% on-year to 1.52 million metric tonnes.
“Compared to July 2013, growth in exports to China PR and the EU, mainly Netherlands, Italy, UK and Spain, were partly offset by lower exports to India, Japan, Pakistan and USA.
Year to date, palm oil exports are up 7.3% as prices remain competitive and also to compensate for tighter soybean stocks in first half 2013. By product, biodiesel exports have surged to 114,414 metric tonnes in the first eight months from 28,983 metric tonnes in 2012