Whitehaven Coal Ltd, listed on ASX, said this morning that there are continuing signs that the thermal coal market is working through an adjustment phase, which began in 2013, to a more sustainable growth path. Indonesian exports, according to the Company, started to decline.

Plantation shares opened mostly lower in Singapore this morning. Other than the broad market sentiment, continuous pressures on palm oil prices weigh an immediate recovery.

KPB Nusantara, the joint marketing office of state plantations, withdrew six out of nine CPO packages auctioned off Thursday (Oct 9) due to low bids. Three packages were sold at Rp8855/Kg (VAT 10% included), lower than Wednesday, due to corrections in futures market and appreciation of rupiah.

Coking coal market remains oversupplied, and prices have just hit a five year-low. Softening in steel industry, including in China, is the main issue. World Steel Organization recently released crude steel statistics for August 2014, which pointed to an aggregate growth of 1.4% in 65 countries, wherein China inched up only 1%.

Unlike coal miners, only one out of 18 palm oil producers listed on Indonesia Stock Exchange (IDX) posting losses in the first half of 2014, i.e. PT MAG Plantation (MAGP). Falling rupiah and ringgit also helps them reporting strong performance in the second half.

Stock market authorities have resumed trading of Bumi Resources (BUMI) shares effective Tuesday (Oct 7) morning amidst downfall of coal stocks worldwide.

Years ago, coal producers hate the so-called Domestic Market Obligation (DMO). Downfall of global coal prices and oversupply in the seaborne market, however, force them to revisit domestic market. According to our research, domestic sales of companies listed on Indonesia Stock Exchange (IDX) grew 15% in the first half of 2014.

TPS Food (AISA) is among the best performing stocks in the past 52 weeks with almost 57% gain. It has declined 14% from peak, but the stock is valued fairly higher than Tunas Baru Lampung (TBLA), which generated about similar size of net sales.

China Shenhua Energy Co Ltd has secured approval from the National Development and Reform Commission (NDRC) for its A$1.47 billion coal project in Australia. This could change future dynamics of coal export to China.