Palm Oil Journal
The benchmark April 2016 contracts of crude palm oil (CPO) advanced RM32 to RM2547 per ton on the Bursa Malaysia Derivatives Wednesday (Feb 3). In Jakarta’s physical market, KPB Nusantara, the joint marketing office of state plantations, sold most packages at Rp7057/Kg (net), the highest price in weeks. Companies in this edition: Bumitama’s new acquisition, DSNG, and Global Palm Holdings.
Masela Block: Testing Jokowi’s Wisdom (2)
President Joko ‘Jokowi’ Widodo is scheduled to make final decision about the giant Abadi LNG project in Masela Block, offshore Maluku and East Nusa Tenggara provinces, in April. On Monday, the President led a limited cabinet meeting, the second in less than two months, to discuss the options: onshore and offshore LNG plant.
CPO Price & Rajawali-Felda Global on Eagle High (2)
The benchmark April 2016 contracts of crude palm oil (CPO) jumped almost 3% to RM2514/ton on the Bursa Malaysia Derivatives Tuesday (Feb 2), while WTI crude oil retreated to below US$30 per barrel once again. This might affect the ongoing discussions between Rajawali Group and Felda Global Ventures on Eagle High Plantations (BWPT).
Speculation on Production Cuts
WTI crude oil opened significantly higher by 4.27% to US$33.7 per barrel on Nymex Friday (Jan 28), while Brent crude soared by 4.6% to US$34.6 per barrel as investors started to speculate on production cuts by major producers. Shares of energy companies were also targets of speculation. Shell advanced 3.8%, while ConocoPhillips jumped 6.4%.
Palm Oil: Further Rally?
The benchmark April contracts of crude palm oil (CPO) advanced to RM2512 per ton midday Thursday, but ended the day losing RM23 to RM2480 per ton. Shares of plantation companies, interestingly, ended the day mostly higher grounds.
Others Leaving, Salim Group Builds Up Coal Assets
Rio Tinto Limited informed market participants this morning that it has signed a binding agreement for the sale of its Mount Pleasant thermal coal assets in Australia to MACH Energy Australia Pty Ltd for US$224 million of cash plus royalties.
Metal Stocks: Further Production Cuts
Shares of mining giants surged worldwide Tuesday as more companies planned production cut this year. Freeport McMoRan, for example, jumped 6.6% in New York despite US$12.2 billion of net loss booked last year, while Anglo American soared 11.8% earlier in London.
Volatility of Commodities
WTI crude oil jumped 9.21% to close at US$32.3 per barrel on Nymex Friday (Jan 22), while Brent crude soared almost 10% to US$32.2/barrel. Other commodities followed suit with aluminium futures advanced 4% on the Chicago Mercantile Exchange, while nickel gained US$200 per ton to close at US$8725 in the London Metal Exchange.
Palm Oil Journal
Crude palm oil (CPO) is expected to open higher in both futures and physical market today to tracking crude oil, which jumped 4% closer to US$30 per barrel in New York yesterday, and soybean oil futures, which advanced on the Chicago Board of Trade. CPO has lost more than 2% in the past few trading days, dragging the benchmark April 2016 contracts closer to RM2400 per ton.
Nickel: Bottoming Out?
Some nickel producers have actually cut output since last year. Nickel prices, however, fell closer to US$8,000 ton before regaining ground to close at US$8680 this week. Longer weak price of the metal might force more producer to cut output. Some expect this would cut nickel stocks level going forward, but others believe this is not enough.