PVMA-MPOB
WEEKLY BULLETIN
Dated: 16-02-2015
Issue No: 67
Vessel
MT PING AN
MT GLOBAL VIKA
MT DONGA IRIS
MT FENGHAI 33
MT DONGA PONTUS
MT BUNGA ASTER
MT SC GUANGZHOU
MT BUNGA AKASIA
SHIPPING & PORTS NEWS
ETA
QTY(MTS) Status/Ship Agent
16-02-15
4,750.00
On High Seas
17-02-15 16,000.00 On High Seas
18-02-15 12,000.00 On High Seas
19-02-15 21,000.00 On High Seas
20-02-15
8,800.00
On High Seas
NIL
32,000.00 Disc at Port Qasim
NIL
NIL
ETL FEB/MAR 2015
NIL
NIL
ETL FEB/MAR 2015
INTERNATIONAL MARKET WATCH 2nd WEEK, FEBRUARY 2015
Prices in the domestic market traded higher.
CPO prices traded higher this week by RM 71.00 to RM 2,255.00 against RM 2,184.00
attained the previous week. The highest and lowest traded prices were at RM 2,350.00 and
RM 2,100.00 respectively. RBD palm olein traded higher at US$660.00. CPO price traded
higher mainly due to:
 Indonesia’s plan to raise biodiesel subsidies will boost its local Palm Oil
consumption for blending onto biodiesel.
 Firmer Brent Crude Oil prices (hovering above US$55/barrel) on concern over
global demand and stronger economic signals from the United States.
Crude palm oil exports duty (after partial duty exemption) for the month
of February, 2015.
 With effect from 01/02/2015-28/02/2015, the CPO export duty payable is
suspended.
Palm oil prices in Europe traded higher.
 Crude Palm Oil price traded higher by US$64.00 to US$685.00. CPO discount visvis SBO narrowed to US$83.50 this week.
 RBD Palm Olein price traded higher by US$39.50 to US$707.00 and was at a
discount of US$61.50 against SBO.
PRICES US $ / Tonne FOB Malaysia
RBD Palm Oil (export price)
04/02/2015 05/02/2015 06/02/2015 09/02/2015 10/02/2015 Present
648.50
665.50
NT
658.50
NT
656.00
Previous Diff +/640.50
15.50
1
RBD Palm Olein
636.50
663.50
Palm Stearin
627.50
NT
667.00
NT
668.00
653.50
662.50
660.00
630.00
30.00
NT
646.00
630.50
15.50
LANDED INDONESIA CPO PRICES IN MALAYSIA
FOB Belawan US$ (offered price)
616.25
645.00
652.50
642.50
637.50
638.75
596.50
Landed Indonesia CPO US$
627.25
656.00
663.50
653.50
648.50
649.75
369.00
Landed Indonesia CPO (RM)
2,254.96 2,344.54 2,358.41 2,327.77 2,309.96 2,319.13 2,239.19
42.25
280.75
79.94
FUTURE PRICES (TONNE)
rd
BMD CPO 3 Month (RM)
2,200.00 2,315.00 2,347.00
2,317.00
2,210.00
2,277.80
2,163.50
114.30
LOCAL MARKET PRICE
PRODUCTS
RATE
UNIT
RBD Palm Oil
Rs 3,540.00
Per 37.324Kg
RBD Palm Olein
Rs 3,500.00
Per 37.324Kg
P.F.A.D
Rs NTR
Per 37.324Kg
Rapeseed Oil
Rs 4,775.00
Per 40 KG
Cotton Seed Oil
Rs 3,600.00
Per 37.324Kg
Canola Seed Oil
Rs 4,200.00
Per 37.324Kg
Soybean Oil
Rs NTR
Per 37.324Kg
Sunflower Oil
Rs 4,100.00
Per 37.324Kg
PMEX Trading Summery for RBD Palm Olein for February 2015
Date
Open
High
Low
Close
09-02-2015 3,488.00 3,631.00 3,488.00 3,631.00
10-02-2015 3,631.00 3,631.00 3,630.00 3,630.00
11-02-2015 3,630.00 3,630.00 3,629.00 3,629.00
12-02-2015 3,629.00 3,629.00 3,539.00 3,539.00
13-02-2015 3,539.00 3,539.00 3,538.00 3,538.00
Pakistan Oils and Fats Related Discharge Comparison for 2014/15
February 01 to 10
Products
Feb-14
Jan-15
Feb-15
RBD Palm Oil
7,000
6,300
28,499
RBD Palm Olein
34,800
58,981
38,660
P.K.F.A
NIL
NIL
NIL
Palm Kernel Oil
NIL
750
NIL
2
P.K.F.A.D
P.K.A.O
C.P.K.O
RBD Palm Stearin
R.O.F.S
Crude Palm Oil
Palm Acid Oil
P.F.A.D
C.D.S.B.O
Tallow
Crude Coconut Oil
Total (M.Tons)
NIL
NIL
NIL
NIL
NIL
3,500
NIL
NIL
NIL
NIL
NIL
45,300
NIL
NIL
NIL
3,350
NIL
9,000
NIL
2,005
NIL
NIL
NIL
80,386
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
67,159
Kerb Market FX Rate US$
Ex. Inter Bank Rate PKR Vs US$
Date
09-02-2015
10-02-2015
11-02-2015
12-02-2015
13-02-2015
Date
09-02-2015
10-02-2015
11-02-2015
12-02-2015
13-02-2015
Bid
101.65
101.65
101.65
101.65
101.65
Offer
101.90
101.90
101.90
101.90
101.90
Bid
101.2300
101.3300
101.4500
101.4800
101.4400
Offer
101.2500
101.3500
101.4700
101.5000
101.4600
Close
101.2400
101.3400
101.4600
101.4900
101.4500
NEWS & REVIEWS
 Malaysian palm oil futures fell on Monday after a 4-day winning streak, traders said,
with concerns over sluggish export demand in February adding pressure. Palm
jumped over 9 percent last week to its biggest weekly gain in six years, after
Indonesia approved a near-threefold rise in biodiesel subsidies that is expected to
boost use of the tropical oil by its top producer. While the move prompted investors
to take more bullish positions, some traders said the contract was severely
overbought and will need to correct it. "Prices have come down mainly due to a
technical correction on the overbought intraday chart," said a trader with a foreign
commodities brokerage in Kuala Lumpur. "Last week the subsidy news came when
the market was under pressure...so everybody started buying. But the bullish impact
on palm oil stocks will only be known over the next few months," the trader added.
The benchmark April contract closed 1.2 percent lower at 2,317 ringgit ($651) per
tonne on Monday. Prices in early trade briefly touched 2,357 ringgit, their highest
since Jan. 15. Total traded volume stood at 61,974 lots of 25 tonnes, much higher
than the usual 35,000 lots. The higher Indonesian biodiesel subsidies of 4,000 rupiah
per litre, from 1,500 rupiah now, may be implemented as soon as March and will
translate to more palm blended into biofuels to feed the country's targeted 17.05
3
million kilolitres diesel consumption this year. Analysts said palm prices will likely
rise in the next few months as the higher subsidies soak up Indonesian palm
inventories, at a time when supplies from No.2 grower Malaysia are expected to be
tight due to unfavorable weather. "The biodiesel subsidy hike certainly gives a boost
to the Indonesian plantation sector as it will help double the domestic palm oil
demand for biodiesel to about 1.7 million metric tonnes from 800,000 metric tonnes
last year," Public Investment Bank said in a Monday note. "It will also partly help
ease Indonesia's mounting inventories that currently stand at an estimated 2.45
million metric tonnes last year." Market players also watched for industry data on
Malaysia's January end-stocks which the Malaysian Palm Oil Board will release on
Tuesday, as well as cargo surveyor export data. The Kuala Lumpur-based trader
added that Malaysian palm oil exports for the first 10 days of February are
anticipated to be weaker than a month ago. A Reuter’s survey showed January
inventories dropping to a six-month low of 1.77 million tonnes. Grower’s body, the
Malaysian Palm Oil Association, estimated that production last month fell 17.1
percent to 1.13 million tonnes. Brent crude slipped on Monday as a slump in
Chinese imports pointed to lower fuel demand in the world's biggest energy
consumer, outweighing falling US oil rig counts and signs of healthy US growth.
 Malaysian palm oil futures ended lower on Tuesday, giving up gains in the earlier
session as traders fretted about poor appetite for the tropical oil, although tighter
stocks in the world's No.2 grower curbed losses. Despite the weak ringgit, which has
made palm oil cheaper for overseas buyers, shipments were sluggish, particularly to
top edible oil consumers India and China, cargo surveyor data showed. Intertek
Testing Services reported that Malaysian palm exports fell 16 percent from Feb. 110 from the same period in January. Another surveyor Societe Generale de
Surveillance showed shipments dropped to 307,122 tonnes. "Exports for the first 10
days of February are not good," said a trader with a foreign commodities brokerage
in Kuala Lumpur "Even with the weak ringgit, you've still got poor demand. So the
market is going for a further correction." The benchmark April contract had dropped
0.7 percent to 2,300 ringgit ($643) per tonne by Tuesday's close, near the lower end
of the day's trading range of 2,344-2,294 ringgit. Total traded volume stood at
52,742 lots of 25 tonnes, above the usual 35,000 lots. Official data from industry
regulator the MPOB, released after the midday break, showed Malaysian inventories
at their lowest in six months after flooding in Borneo helped to reduce overall output
to their weakest since February 2011. While the level of stocks was largely in line
with market estimates, the drop in output was steeper, with January palm crude oil
production at only 1.16 million tonnes versus a Reuter’s poll of 1.19 million tonnes.
Technical showed that palm oil may drop to 2,284 ringgit, as its correction triggered
by a resistance at 2,355 ringgit seems to be incomplete, according to Reuter’s market
analyst Wang Tao. In other competing vegetable oil markets, the US soyoil contract
for March fell 0.8 percent in late Asian trade. The most active May soybean oil
contract on the Dalian Commodity Exchange rose 0.2 percent.
4
 Malaysian palm oil futures edged down on Wednesday to a near one-week low as
concerns over waning demand from key customers turned investors wary, although
official data showing smaller stockpiles in the No.2 grower provided some support.
Industry regulator the Malaysian Palm Oil Board reported that palm inventories in
Malaysia tightened to their lowest in six months at 1.77 million tonnes, after
monsoon flooding made worse the impact of a seasonal decline in yields. But while
crude palm oil production last month was at its weakest since February 2011,
analysts warn a recovery in yields at the end of the quarter may cause stocks to build
up again. “We expect palm oil output to trend higher from March onwards as the
impact of flooding subsides. As such, higher CPO demand will be critical to keep
inventory manageable,” said CIMB analyst Ivy Ng in Kuala Lumpur. The
benchmark April contract fell 1 percent to 2,277 ringgit ($633) per tonne on
Wednesday, after briefly touching 2,270 ringgit; it’s lowest since Feb. 5. Total
traded volume stood at 55,852 lots of 25 tonnes, higher than the usual 35,000 lots.
Demand for palm has been sluggish in 2015, due to abundant supplies of rival
oilseeds as well as a rout in crude prices which dented biodiesel exports. Data from
cargo surveyor Intertek Testing Services showed Malaysian shipments were 16
percent weaker in Feb. 1-10. Malaysian producers of palm-based biodiesel are now
seeking new incentives from their government after Indonesian makers were
promised the subsidy hike. Representatives of Malaysia’s biodiesel industry will
meet commodity ministry officials on Thursday to discuss policies to help the ailing
sector. The US soyoil contract for March fell 0.2 percent in late Asian trade, while
the most active May soybean oil contract on the Dalian Commodity Exchange lost
0.1 percent.
 Malaysian palm oil futures edged up on Thursday, snapping three days of decline, as
weakness in the ringgit and the announcement that Malaysia will resume taxing
palm exports encouraged buying. However, gains were limited as traders awaited
more information on the reinstatement of the tax. Malaysia will resume taxing
exports of crude palm oil in March, a minister said, after scrapping the duty for five
months to spur demand and reduce bloated stockpiles. “The export price is raised,
it’s good news for the market,” said one trader with a foreign brokerage in Kuala
Lumpur. “But the ringgit is weaker, and then we hear the tax news, the market
should be encouraged to rally. Maybe one of the reasons it’s a bit lethargic is that
people are holding back to wait for any further information from Putrajaya,” the
trader added, referring to the city where a reinstatement of the tax regime was
announced at a Malaysian palm industry conference. The benchmark April contract
had edged up 0.7 percent to 2,294 ringgit ($636) per tonne by Thursday’s close.
Total traded volume stood at 49,165 lots of 25 tonnes, higher than the usual 35,000
lots. Technical showed palm may drop further to 2,247 ringgit per tonne, as it has
broken support at 2,289 ringgit, said Reuter’s market analyst Wang Tao. The US
soyoil contract for March rose 0.06 percent, while the most active May soybean oil
contract on the Dalian Commodity Exchange fell 0.26 percent.
5
 Malaysian palm oil futures edged down on Friday as the market digested recent
news of Malaysia’s plans to re-impose taxes on palm oil exports and traders
prepared for the Lunar New Year long weekend next week. By Friday’s close, the
benchmark April contract had edged down 0.04 percent to 2,293 ringgit ($641) per
tonne, and ended the week down 2.3 percent. Total traded volume stood at 48,093
lots of 25 tonnes, above the usual 35,000 lots. “Come March they will be imposing
taxes, so that piece of news is actually bearish,” a trader with a foreign brokerage in
Kuala Lumpur said referring to news on Malaysia’s plans to resume taxing exports
of crude palm oil in March that were seen supporting prices on Thursday. “Today is
more or less an adjustment of the situation. If it wasn’t for the Dalian moving up I
think our market would have dropped a lot more,” the trader said. In competing
markets, the most active May soybean oil contract on the Dalian Commodity
Exchange rose 1.72 percent, while the US soyoil contract for March gained 0.34
percent. “One of the main reasons for the aggressive movement of late is the buying
up of palm oil for the festive season, because during the holiday most of the
plantations will be closed and there will be no production,” the trader said. He noted
the market had begun to slow as the Malaysian commodities bourse will close on
Thursday and Friday next week. Technical showed palm oil may end its current
rebound from the Feb. 11 low of 2,270 ringgit around resistance at 2,320 ringgit,
Reuter’s market analyst Wang Tao said. Top buyer India’s palm oil imports in
January dropped more than one fifth from a month earlier to 658,670 tonnes as
refiners increased overseas purchases of sunflower and soyoil.
HIGHLIGHTS OF THE WEEK
 Malaysian Palm Oil Board (MPOB) said that Malaysia’s January 2015 CPO output
was down 15% to 1.16 million metric tons while end January 2015 stocks was down
12.2% to 1.77 million metric tons. Palm Oil exports were also down 22.1% to 1.18
million metric tons.
 Intertek Testing Services (ITS) cargo surveyor said that the Malaysian Palm Oil
exports for 1-10 February 2015 down 16% on month.
 SGS (SDN) BHD another cargo surveyor said on Tuesday, 10th Feb, 2015 that the
Malaysian Palm Oil exports for 1-10 February, 2015 down 4.2% to 307,122 metric
tons from the quantity of 320,714 metric tons for the same period of January 2015. It
included 37,050 tons Palm Oil, 65,132 tons of RBD Palm Olein, 30,060 tons Palm
Stearin and Crude Palm Oil 98,160 metric tons. India was the biggest buyer by
taking 34,400 tons. Followed by China bought 19,812 metric tons. Pakistan & USA
bought 16,150 & 15,020 metric tons respectively. European countries bought 13,920
metric tons.
6
 POC 2015 Palm & Lauric Oils Price Outlook Conference & Exhibition ‘Trade
Hedge & Be Ahead of Markets’ is scheduled from 2-4 March, 2015 at Kuala
Lumpur, Malaysia. PVMA delegation led by its Chairman Mr. Atif Ikram Sheikh is
planning to attend the Conference and proposed meetings with PORAM and others.
7