Business Times

26 August, 2010

Crude palm oil futures prices on Bursa Malaysia Derivatives declined slightly yesterday in reaction to weaker export data, dealers said.

Cargo surveyor Intertek Testing Services estimated a drop by 7.6 per cent in the export of Malaysian palm oil products for the first 25 days of August at 992,319 tonnes compared with 1,074,329 tonnes shipped in the same period of July.

Meanwhile, Societe Generale de Surveillance estimated that exports of Malaysian palm oil products for the period fell 14.9 per cent to 939,456 tonnes.

Dealers said market players also remained concerned over slow demand and stock build up as production improved.

At close, September 2010 fell RM30 to RM2,640 per tonne, October 2010 decreased RM29 to RM2,541 per tonne, November 2010 went down RM24 to RM2,486 per tonne and December 2010 was RM13 lower at RM2,468 per tonne.

Total volume rose to 29,218 lots from 28,938 lots the previous day while open interests decreased to 68,654 contracts from 69,199 contracts earlier.

On the physical market, August South was down RM30 at RM2,670 per tonne from RM2,700 per tonne the previous day.

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By Hanin Adnan

The Star

26 August, 2010

Higher average selling prices and sales volume boost performances

Listed plantation companies which released their quarterly results yesterday generally posted stronger performances buoyed by higher average selling prices of crude palm oil (CPO) and palm kernel (PK) as well as higher sales volume.

Genting Bhd unit Genting Plantations Bhd saw net profit increasing to RM71.4mil for its second quarter ended June 30 from RM59mil in the previous quarter.

Revenue for the quarter under review firmed RM231.2mil on the back of RM95.6mil in pre-tax profit.

The group attributed the stronger performance to higher prices of palm products, an increase in fresh fruit bunches (FFB) production and gain on dilution of shareholdings in a subsidiary.
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The Star

26 August, 2010

Only 10.5% members of the Indonesian Palm Oil Producers Association (Gapki) have the Roundtable on Sustainable Palm Oil (RSPO) status due to the high cost for certification and low premiums for sustainable crude palm oil (CPO).

“On paper, it’s been said one can get a premium of US$50 per tonne for RSPO certified CPO on top of the existing CPO market price. But in reality, the premium is more like US$10 per tonne,” Gapki secretary-general Joko Supriyono told StarBiz.

Of Gapki’s 380 members, about 40 were RSPO certified, said Supriyono. “It is expensive to get RSPO and the premium for certified sustainable palm oil (CSPO) is insufficient to cover the costs,” he said.

Palm oil producers are also reluctant to seek CSOP as the extra cost for the status is wholly borne by producers.

“Other key players along the palm oil supply chain do not want to share the added cost for sustainable certification. It is too expensive for many producers to bear all these added costs,” said Supriyono. Read the rest of this entry »

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