Palm Oil Journal No.74/2014: New Low
The benchmark October 2014 contracts of crude palm oil (CPO) lost almost 2% to close at RM2133 per ton on Thursday (August 14) on Bursa Malaysia Derivatives. August contracts dropped 3% to RM2150, while November and December down RM40 and RM42 to RM2135 and RM2151 per ton respectively. October and November contracts were traded as low as RM2115 and RM2113 per ton respectively.
Palm Oil Journal No.73/2014: Where is the Bottom?
KPB Nusantara, the joint marketing office of state plantations, sold most CPO packages auctioned off Wednesday (August 13) at Rp8546/Kg (VAT 10% included) or Rp7769/Kg net (US$665/ton), way below average price of CPO in the first half of 2014, which had contributed strong performance of plantation companies in the period.
Coal Journal No.65/2014: ITMG, Geo Energy & China Coal
Shares of Indo Tambangraya Megah (ITMG) closed higher by 2.2% Wednesday (August 13) as investors responded positively the company’s first half 2014 performance, where it posted net profit of US$148 million, jumped 40.4% from the corresponding period of 2013. In this report: Worsening performance of Geo Energy Resources and China Coal Energy’s production plan.
First Half 2014 Results: Bumitama Agri vs First Resources
Shares of First Resources Ltd, controlled by Indonesian family of Fangiono Ciliandra/Surya Dumai Group, collapsed 4.55% this morning as investors responded negatively the company’s first half 2014 results, where it posted 28.8% drop in net profit to US$73.96 million.
Coal Output Cap: Who Gets What?
Energy and mineral resources ministry is working on the so-called coal roadmap 2015-2030, which, among others, will cap national coal production at 425 million tons and annual growth of 1%. The roadmap ensures availability of the fuel for medium-long term domestic consumption. The roadmap, if implemented fairly next year, will likely change plans from all coal producers.
Coal Journal No. 64/2014: How Low?
Reference price of Indonesian thermal coal for August 2014 is set at US$70.29 per ton, down 8.36% from August 2013. This is the new low in years due to strong supply in the seaborne market, including effects from illegal coal export from Indonesia.
Palm Oil Journal No.72/2014
The benchmark October contracts of crude palm oil (CPO) recovered RM9 to RM2185 per ton this morning after trading as low as RM2162 per ton. Interestingly, only seven out of 14 plantation companies listed on KLSE reporting higher output in July 2014 over July 2013. KL Kepong, for example, reported only 4.3% growth in the month.
Japfa Singapore IPO & Indonesian Peers
Agriculture giant Japfa Ltd expects to raise US$158 million from an initial public offering (IPO) on the Singapore Exchange (SGX) mainboard. The company has yet to release its first half 2014 results, but peers (Charoen Pokphand Indonesia, Malindo Feedmill, and Sierad Produce) have posted mixed performance. They continue to report strong sales revenue growth, but profit margins squeezed significantly.
Multiple Actions from Bumitama Agri
Bumitama Agri Ltd, a company listed on SGX with market capitalization of S$2.2 billion owned by Indonesian business group Harita and Malaysian IOI Corp, logged three interesting disclosures to the exchange and investors Thursday (August 7), including its plan to expand into downstream operations of crude palm oil, including biodiesel and oleochemicals.
Banking on Administrative Control of Coal Export with “ET”
Aggressive export of cheap and illegal coal from Indonesia in the past few years amidst slowdown of China economy contributed to downfall of the commodity’s price in seaborne market. Indonesian government moves in with some new initiatives, which might cut significantly supply of coal in the global market.