New Forest + Sampoerna Agro in Rubber Plantation
New Forests Tropical Asia Forest Fund LP (TAFF), unit of investment company New Forests Asset Management Pty Ltd, has entered into PT Hutan Ketapang Industri (HKI), a subsidiary of Sampoerna Agro (SGRO), through equity and loan agreements worth Rp588 billion.
CPO Futures & Falling Output
SGX-listed palm oil producer First Resources Limited, with plantations in Indonesia, reported lower output of crude palm oil (CPO) las month even though its own FFBs production grew 8.2%. This is in line with lower production reported by 18 plantation companies listed on KL Stock Exchange in the month.
Coal Journal
Shares of coal producers advanced worldwide as crude oil scored its biggest daily gains in three weeks. Peabody Energy, the world’s largest coal producer in private sector, jumped 11.9% in New York Wednesday (Dec 16), while BHP Billiton advanced 5.6% in Sydney this morning.
M&A: United Malacca Acquires Indonesian Plantation Assets
Malaysian plantation firm United Malacca Sdn Bhd has entered into a conditional sale and purchase agreement with BVI-based Lincoln Wilshire Investments Ltd for the acquisition of 88.2% shares in International Natural Resources Pte Ltd (INR), which indirectly controls plantation assets in Kalimantan for cash consideration of US$66.4 million.
Highlights from November Trade Stats
Indonesia’s export reached US$11.16 billion last month, down 7.91% from the previous month and 17.6% from November 2014 due to further corrections in commodities. Almost all products, except footwear which grew 17%, dropped significantly. Interestingly, import grew significantly to post the first monthly trade deficit of the year.
CPO Futures & Falling Output
The benchmark March 2016 contracts of crude palm oil (CPO) opened flat on the Bursa Malaysia Derivatives this morning due to volatility in the crude oil market. Falling harvest of FFBs and CPO production, however, might prevent further corrections of the commodity.
Swift Energy, Fasken Shale, and PGN
Shares of oil and gas company PT Perusahaan Gas Negara (PGAS) Tbk collapsed 7% Monday (Dec 14). Hours later, Swift Energy Co tumbled 8.1% in New York as WTI crude oil stays around US$35 per barrel. Investors continue to wonder the future of PGAS’ investments in Fasken Shale Gas developed by Swift Energy Co.
Coal Falls Further, So?
Coal producers have to wait longer to see recovery of coal prices in the seaborne market due to persistent weakness of crude oil, falling demand in China, and oversupply in coal producing countries. Reference price of Indonesian thermal coal (6322 Kcal/Kg) for December 2015 is set at US$53.51 per ton, down 1.7% from last month.
Commodities & Shares
WTI crude oil fell to its new low at US$35.35 per barrel on Nymex Friday (Dec 11), while Brent crude dropped 5.2% to US$37.67 per barrel. Metals, however, were mixed because copper gained 1.53%, while aluminium lost 2.86%. Soybean oil also lost 1.14%, but crude palm oil (CPO) gained 2.7% earlier on the Bursa Malaysia Derivatives.
Barramundi Producers in Indonesia (1)
SeafoodSource.com reported more than five years ago that PT Fega Marikultura, claimed as the largest barramundi fish (Asian sea bass) producer in Indonesia, planned to boost its production from 3000-4000 tons per annum to 40,000 tons by 2013. Back then barramundi price was only around A$8/Kg (whole fish basis).