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PVMA-MPOB
WEEKLY BULLETIN
Dated: 05-11-2014
Issue No: 52
Vessel
MT BUNGA ANGELICA
MT CB KING POINT
MT ABLE SAILOR
MT HORIZON
SHIPPING & PORTS NEWS
ETA
QTY(MTS) Status/Ship Agent
01-11-14
7,750.00
On High Seas
01-11-14 18,500.00 On High Seas
02-11-14 22,250.00 On High Seas
03-11-14 29,500.00 On High Seas
STOCKS AVAILABLE AT KARACHI TERMINALS AS ON 27-10-2014
Name of Product
Quantity in M.Tons
Remarks
RBD Palm Olein
116,840.00
RBD Palm Oil
88,485.00
CDSBO
6,265.00
INTERNATIONAL MARKET WATCH 4th WEEK, OCTOBER 2014
Prices in the domestic market traded higher.
CPO prices traded higher this week by RM 28.50 to RM 2,167.50 against RM 2,139.00
attained the previous week. The highest and lowest traded prices were at RM 2,220.00 and
RM 2,085.00 respectively. However, RBD palm olein traded higher at US$686.00.CPO
traded higher mainly due to:
 Market expectation of lower palm oil production for the coming months amid rainy
weather condition.
 Firmer soyabean oil prices attributed to the slower pace of harvesting (soyabean) in
the United States, coupled with dryness delaying the planting of soyabean in Brazil.
Crude palm oil exports duty (after partial duty exemption) for the month
of November, 2014.
 With effect from 01/11/2014-30/11/2014, the CPO export duty payable is NIL.
Palm oil prices in Europe traded higher.
 Crude palm oil price traded higher by US$11.50 to US$710.50. CPO discount visvis SBO narrowed to US$113.00 this week.
 RBD palm olein price traded higher by US$15.50 to US$743.50 and was at a
discount of US$79.00 against SBO.
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PRICES US $ / Tonne FOB Malaysia
RBD Palm Oil (export price)
22/10/2014 23/10/2014 24/10/2014
PH
NT
690.00
RBD Palm Olein
PH
684.00
685.00
Palm Stearin
PH
677.50
NT
27/10/2014 28/10/2014
653.00
695.00
693.50
NT
NT
NT
Present
686.00
Previous Diff +/673.00
13.00
686.00
682.00
4.00
677.50
663.50
14.00
LANDED INDONESIA CPO PRICES IN MALAYSIA
FOB Belawan US$ (offered price)
PH
652.50
655.00
650.00
660.00
654.38
646.50
Landed Indonesia CPO US$
PH
663.50
666.00
661.00
671.00
665.38
657.50
Landed Indonesia CPO (RM)
PH
2,174.29 2,185.48 2,169.07 2,200.21 2,182.26 2,153.50
7.88
7.88
28.76
FUTURE PRICES (TONNE)
rd
BMD CPO 3 Month (RM)
PH
2,171.00 2,180.00
2,165.00
2,212.00
2,182.00
2,127.00
55.00
LOCAL MARKET PRICE
PRODUCTS
RATE
UNIT
RBD Palm Oil
Rs 3,950.00
Per Maund
RBD Palm Olein
Rs 3,950.00
Per Maund
P.F.A.D
Rs NTR
Per Maund
Rapeseed Oil
Rs NTR
Per 40 KG
Cotton Seed Oil
Rs NTR
Per 37 KG
Canola Seed Oil
Rs NTR
Per 37 KG
Soybean Oil
Rs NTR
Per 37 KG
Sunflower Oil
Rs NTR
Per 37 KG
PMEX Trading Summery for RBD Palm Olein for October 2014
Date
Open
High
Low
Close
27-10-2014 3,836.00 3,836.00 3,807.00 3,807.00
28-10-2014
NT
NT
NT
NT
29-10-2014 3,847.00 3,847.00 3,845.00 3,845.00
30-10-2014 3,845.00 3,960.00 3,845.00 3,960.00
31-10-2014
NT
NT
NT
NT
2
Pakistan Oils and Fats Related Discharge Comparison for 2013/14
October 01 to 30
Products
Oct-13
Sep-14
Oct-14
RBD Palm Oil
92,317
137,292
83,698
RBD Palm Olein
126,134
92,142
120,206
P.K.F.A
NIL
NIL
NIL
Palm Kernel Oil
550
1,000
500
P.K.F.A.D
NIL
NIL
NIL
P.K.A.O
NIL
NIL
NIL
C.P.K.O
NIL
NIL
NIL
RBD Palm Stearin
1,993
9,699
7,600
R.O.F.S
NIL
NIL
NIL
Crude Palm Oil
17,000
11,000
13,000
Palm Acid Oil
NIL
NIL
NIL
P.F.A.D
NIL
NIL
NIL
C.D.S.B.O
NIL
8,000
9,472
Tallow
NIL
NIL
NIL
Crude Coconut Oil
NIL
NIL
NIL
Total (M.Tons)
237,994
259,133
234,476
Kerb Market FX Rate US$
Ex. Inter Bank Rate PKR Vs US$
Date
27-10-2014
28-10-2014
29-10-2014
30-10-2014
31-10-2014
Date
27-10-2014
28-10-2014
29-10-2014
30-10-2014
31-10-2014
Bid
103.15
103.20
103.25
103.25
103.00
Offer
103.40
103.50
103.50
103.50
103.20
Bid
103.0600
103.3400
103.2200
103.0600
102.8700
Offer
103.0800
103.3600
103.2400
103.0800
102.8900
Close
103.0700
103.3500
103.2300
103.0700
102.8800
NEWS & REVIEWS
 Malaysian palm oil futures edged down on Monday, slipping off a two-week high as
losses in overnight soya markets as well as weak crude prices weighed, although
optimism that wet weather could cap output in the world’s top palm growers
provided support. Export demand for Malaysian palm oil held steady, but was still
down 11.2 percent for Oct. 1-25 period compared with a month ago, according to
data from cargo surveyor Intertek Testing Services. Another cargo surveyor Societe
Generale de Surveillance showed exports for the same period fell 11.7 percent. “The
weakness in US soyabean oil on Friday night, as well as today’s Dalian pushed the
palm market lower,” said a trader with a foreign commodities brokerage in Kuala
Lumpur. “But overall, the supportive tone is still prevailing in the market. Now,
people are waiting for a clearer picture on October production,” the trader added.
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“Prices are range-trading between 2,150-2,240 ringgit.” The benchmark January
contract on the Bursa Malaysia Derivatives Exchange ended down 0.7 percent at
2,165 ringgit ($661) per tonne. Palm posted last week its biggest weekly gain in four
with a rise of 1.8 percent. Total traded volume stood at 30,455 lots of 25 tonnes,
below the usual 35,000 lots. Benchmark prices were trapped in a tight range of 2,164
ringgit to 2,176 ringgit as investors waited for more direction and avoided risky bets
ahead of a two-day palm oil conference in Kuala Lumpur from Tuesday. Technical,
however, showed palm may drop into a range of 2,132-2,149 ringgit per tonne, as a
correction from the Oct. 1 high of 2,223 ringgit could have extended, said Reuter’s
market analyst Wang Tao. The rainy monsoon season, which affects top oil palm
producers Indonesia and Malaysia and is marked by frequent thunderstorms, is
expected to begin in early or mid-November and stretch out into late December. The
heavy rains typically cause flooding which can delay harvesting and transportation
of palm fruit. Market players are looking to the expected fall in output to eat into
Malaysian stockpiles of the tropical oil that stood at 2.09 million tonnes as of
September end. But palm prices could be pressured if India, the world’s top edible
oil consumer, raises import taxes on vegetable oils. India is considering raising the
import taxes on crude and refined vegetable oils by more than 5 percent to protect
local farmers and the refining industry, two government sources said on Monday, as
purchases by the world’s top importer are expected hit a record this year. In
competing vegetable oil markets tracked by palm, the US soyoil contract for
December fell 0.5 percent in late Asian trade, while the most active January
soyabean oil contract on the Dalian Commodities Exchange shed 1.6 percent. In
other markets, Brent crude oil fell below $86 a barrel on Monday after Goldman
Sachs slashed its price forecasts, citing abundant supply and lackluster demand
despite a pickup in global economic growth. Palm oil typically competes with the
energy market for its increasing use as a renewable fuel.
 Malaysian palm oil futures rose to a near-three-week high on Tuesday on a bout of
technical buying, traders said, while plans to increase the use of palm oil in biodiesel
by the world’s No.2 grower received a lukewarm response from market players. The
benchmark January contract on the Bursa Malaysia Derivatives Exchange rose to
2,216 ringgit in late trade, the highest since Oct, 9, before ending up 2.1 percent to
2,212 ringgit ($676) per tonne by the day’s close. “Technical buying is keeping the
market on the supportive side after some mild correction yesterday,” said a trader
with a foreign commodities brokerage in Kuala Lumpur. Total traded volume stood
at 51,423 lots of 25 tonnes, above the usual 35,000 lots. Malaysia, the world’s
second-largest palm producer, on Tuesday said it would increase the amount of palm
oil in biodiesel to 7 percent from November onwards, up from 5 percent now. The
“B7” biodiesel mandate, targeted to be fully implemented nationwide by December
this year, is expected to boost the domestic use of biodiesel to 575,000 tonnes a year,
Malaysia’s plantation industries and commodities minister said. “There are still
many things that are unknown, so even if everything comes into play, it will still
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have a minimum impact on prices,” said a second Kuala Lumpur-based dealer. “We
need to quantify how much palm is actually being used.” Technical showed that
palm oil looks neutral in a range of 2,164-2,195 ringgit per tonne, with any escape
pointing its likely direction, said Reuter’s market analyst Wang Tao. But Tao added
that the bias seemed to be towards the upside, which means palm oil may rise above
2,195 ringgit and then gain further to 2,223 ringgit. In competing vegetable oil
markets, the US soyoil contract for December rose 1.4 percent in late Asian trade,
while the most active January soybean oil contract on the Dalian Commodities
Exchange eased 0.1 percent.
 Malaysian palm oil climbed to its highest level in almost 12 weeks on Wednesday,
supported by gains in competing oilseed markets and on expectations the country’s
palm oil demand would increase because of a new biodiesel policy, traders said. In
competing vegetable oil markets, the US soyoil contract for December edged up
1.65 percent in early Asian trade, while the most active January soybean oil contract
on the Dalian Commodities Exchange rose 2.12 percent. Malaysia announced the
“B7” mandate on Tuesday, to increase the amount of palm oil in biodiesel from 5
percent to 7 percent from November, as the world’s No. 2 palm grower tries to
reduce stockpiles and prop up prices that have fallen nearly 20 percent this year.
“These are all positive factors for the market,” said a trader with a foreign
commodities brokerage in Kuala Lumpur, adding that the onset of heavy rains in
Malaysia’s monsoon season would likely curb output and provide additional
support. “In Malaysia, every day it’s raining. Definitely, if there’s too much rain
then the production will be going down.” Seasonal factors including anticipated
stronger demand around the end of the year are seen supporting prices in coming
days, the trader said. By Wednesday’s close, the benchmark January contract on the
Bursa Malaysia Derivatives Exchange had gained 2.26 percent to 2,263 ringgit
($691.84) per tonne, its highest level since Aug. 8. Total traded volume on
Wednesday stood at 68,612 lots of 25 tonnes, well above the average of 35,000 lots
traded. Technical showed palm oil is expected to rise to 2,295 ringgit per tonne,
having cleared a resistance at 2,259 ringgit, said Reuter’s market analyst Wang Tao.
Palm oil prices may have bottomed out and will likely trade between 2,100-2,300
ringgit per tonne ($641-$703) in the next few weeks before rising to 2,500 ringgit by
March, as output weakens and stocks ease, leading analyst Dorab Mistry said.
However, according to leading industry analyst James Fry, palm may be capped at
2,300 ringgit ($704) if Brent crude prices fall to $85. Brent crude oil extended gains
above $86 a barrel on Wednesday as traders anticipated the end of quantitative
easing in the United Stated would squeeze the dollar.
 Malaysian palm oil futures rose to a more than three-month high on Thursday,
driven by big gains in comparative soy markets as well as optimism that growing
food consumption amid weakening palm output will underpin prices into next year.
The most active January soybean oil contract on the Dalian Commodities Exchange
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surged to a 1-1/2 month high and was up 2.6 percent in late Asian trade, while the
US soyoil contract for December was little changed after overnight gains. US
soybeans rose to a seven-week peak and were trading around $10.45-3/4 a bushel
late Thursday, buoyed by a slow start to its anticipated record soybean harvest. “The
market is pretty strong. Soybeans and soybean oil rallied sharply, the whole grain
complex is up, and palm is reflecting this,” said a trader with a foreign commodities
brokerage in Kuala Lumpur. The benchmark January contract on the Bursa Malaysia
Derivatives Exchange had edged up 0.8 percent to 2,280 ringgit ($693) per tonne by
the day’s close. Prices peaked at 2,302 ringgit in intraday trade, their highest since
July 21. Total traded volume stood at 65,212 lots of 25 tonnes, nearly double the
usual 35,000 lots. Technical looked bullish. Malaysian palm oil is expected to rise to
2,340 ringgit per tonne, as it has cleared resistance at 2,295 ringgit, said Reuter’s
market analyst Wang Tao. Leading industry analysts are now more bullish on prices
of palm, the world’s most traded vegetable oil, due to seasonally weakening output
caused by dry spells earlier in Malaysia, as well as the ongoing drought in the palmgrowing region of Indonesia’s Kalimantan. Both Indonesia and Malaysia account for
about 85 percent of the world’s palm oil supply. Indonesia will set its crude palm oil
export tax for November at zero, unchanged from a month ago, a government
official said on Thursday. The decision was largely anticipated by industry sources,
who expected the top producer to strive to remain competitive with rival Malaysia.
Prices would likely also draw support from rising demand in India and China, the
world’s biggest edible oil buyers, the analysts said. Top vegetable oil analyst Dorab
Mistry told a palm oil conference in Kuala Lumpur on Wednesday that prices will
likely trade between 2,100-2,300 ringgit over the next few weeks before rising to
around 2,500 ringgit by March, as output drops and stocks ease.
 Malaysian palm oil futures stretched gains into a fourth day on Friday to hover at
over three-month highs and posting their biggest weekly rise in nearly a year, as the
tropical oil drew support from projections of weaker output and easing stocks. But
market players said prices, which are up for a second month having gained 4 percent
in October, may be poised for a correction with possible profit-taking on the way.
“After three consecutive days of run-up, with open positions in free fall, prices could
succumb to profit-taking with an immediate target of 2,200-2,230 ringgit,” said
Lingam Supramaniam, director at Malaysia-based commodities firm Pelindung
Bestari. While prices have gained 8.3 percent from Oct. 20, open interest in
Malaysian palm oil futures fell from 267,221 lots on Oct. 20 to an early-August low
of 228,662 lots on Oct. 30. It hit a record high of 287,859 lots on Sept. 10. Another
Kuala Lumpur-based trader said investors were likely to book profits from palm
which notched up big gains this week. By the day’s close, the benchmark January
contract on the Bursa Malaysia Derivatives Exchange had edged up 1.1 percent to
2,307 ringgit ($701.3) per tonne, and was trading between 2,274 and 2,311 ringgit.
Prices last touched these levels on July 18. Total traded volume stood at 47,432 lots
of 25 tonnes, much higher than the usual 35,000 lots. Also supporting prices,
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Malaysian palm oil stocks could drop 14 percent by the end of 2014 from 2.09
million tonnes at the end of last month, a senior official of the Malaysian Palm Oil
Board (MPOB) said, as export demand and domestic food and fuel needs pick up.
Palm has gained 6 percent this week, its biggest weekly gain since November 2013,
lifted by bullish projections from industry experts that growing food consumption
and weakening output could push prices to 2,500 ringgit per tonne in the first quarter
of 2015. Exports of palm oil products from Malaysia fell 2 percent in October from
September, cargo surveyor Intertek Testing Services (ITS) said, recovering from
steeper losses earlier in the month thanks to better demand in second-half October.
In other competing vegetable oil markets, the US soyoil contract for December rose
0.5 percent, while the most active January soybean oil contract on the Dalian
Commodities Exchange added 0.7 percent.
HIGHLIGHTS OF THE WEEK
 Intertek testing services (ITS) cargo surveyor said on Friday, 31st Oct, 2014 that the
Malaysian palm oil exports for October, 2014 down 2.0% to 1.468 million metric
tons from the quantity of 1.497 million metric tons for the month of September,
2014. It included 64,837 tons palm oil, 495,311 tons of RBD palm olein, 88,969 tons
palm Stearin and crude palm oil 568,670 metric tons. India & Sub-continent were
the biggest buyers by taking 441,650 tons. Followed by China bought 268,890
metric tons. European countries bought 281,683 metric tons. Middle East bought
77,730 metric tons.
 SGS (SDN) BHD another cargo surveyor said that the Malaysian palm oil exports
for the month of October, 2014 down 2.0% to 1.463 million metric tons from the
quantity of 1.494 million metric tons for the month of September, 2014. It included
90,187 tons Palm Oil, 479,143 tons of RBD Palm Olein, 108,870 tons Palm Stearin
and Crude Palm Oil 515,809 tons. India was the biggest buyer by taking 335,829
tons. Followed by China taking 254,790 metric tons. USA and Pakistan bought
88,850 and 46,000 respectively. European countries bought 289,618 metric tons.
 Industrialists and traders in the ghee and oil sector have rejected the hike in power
prices saying the continuous increase in electricity tariff has made it difficult to run
their industries. Power prices are unaffordable for the industrialists. The Supreme
Court of Pakistan has already decided to stop collection of GIDS, while the
Peshawar High Court has issued a stay order against it.” said Chairman Pakistan
Vanaspati Mills Association (PVMA) Atif Ikram Sheikh, who is also President
Haripur Chamber of Commerce and Industries.
 The selection of taxpayers operating under special sales tax/Federal Excise Duty
(FED) regimes for audit through random computer balloting (Tax Year 2013) has
raised legal questions about tax audit of units working without input/output
7
adjustment mechanism. In the light of the legal explanation, the industry has asked
the FBR to withdraw the audit notices issued to registered manufactures of vegetable
ghee/cooking oil.
 The government has reduced prices of Petroleum Products, under which High Speed
Diesel (HSD) price has been decreased from Rs. 107.39 to Rs. 101.21 per liter i.e.
decrease of Rs. 6.18/liter. All PVMA members are hereby intimated for paying the
Transportation Charges for their Edible Oil consignments to NLC/Private Tankers
with a decrease of 4.64% of the existing rates w.e.f. 1st Nov, 2014.
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