KUALA LUMPUR (Jan 7): In a year of two halves seen for crude palm oil (CPO) prices, Godrej International Ltd director Dorab Mistry predicted today Malaysia CPO prices may fall dramatically in the second half of 2021 (2H21) in anticipation of higher oil palm output after an expected stronger prices for CPO in 1H21. Mistry, who was speaking at the Palm Oil Trade Fair and Seminar 2021 today, said "explosive" CPO price moves may happen between now.
Malaysia’s palm oil total export value is expected to surpass rm70 billion in 2020 as palm oil importing-countries are stocking up their inventories due to plunging demand. Plantation Industries and Commodities Ministry (MPIC) secretary-general Datuk Ravi Muthayah said the country’s export earnings is expected to reach RM52 billion for the year. Muthayah said that palm .
Oil World editor and CEO Thomas Mielke.
“A premium [in CPO’s price to soybean oil] is only possible during a short period of time,” Mielke said during a question and answer session at the Palm Oil Trade Fair and Seminar today.
“Long term, I expect palm oil’s discount relative to soybean oil will narrow for an annual average, and that this should already occur for 2021 and I expect this to continue,” he said.
Indonesian Palm Oil Association (GAPKI) vice chairman Togar Sitanggang said that at the end of 2019, CPO prices were above soybean oil prices.
“But the result was the switching of demand, which is not really good for palm oil because everyone started buying soybean oil and it returned to a premium.
KUALA LUMPUR (Jan 6): There are huge growth opportunities for Malaysian palm oil in the African continent, the Chief Executive Officer (CEO) Forum at the Palm Oil Trade Fair and Seminar 2021 (POTS 2021) was told today.
Vimal Shah, chairman and co-founder of fast-moving consumer goods company Bidco Group, based in Kenya, said the African continent as a whole imports seven million tonnes of palm oil a year, of which 37% or 2.2 million tonnes are from Malaysia.
Consumers on the continent, he said, look at the best prices and trading terms when purchasing palm oil, and it is up to those who export to this region to decide where to source the palm oil from. “In fact, any Malaysian seller is welcome to sell to Africa, because the markets are free. We just launched on Jan 1 the African Continental Free Trade Area (ACFTA), which makes 35 countries in Africa, one single free trade area for trading across the region,” he said.
KUALA LUMPUR (Jan 6): Palm oil companies need to collaborate with competing oilseed producers, in order to offer multi-oils solutions, according to IOI Corp Bhd Managing Director (MD) and Chief Executive Officer (CEO) Datuk Lee Yeow Chor (pictured).
Lee, who was speaking at the CEO Forum at the Palm Oil Trade Fair and Seminar 2021 (POTS 2021), highlighted those other oilseed sectors are also important to the countries where they are produced, and that different food applications require different fats compositions.
“This ultimately leads to two important outcomes. This allows the industry to navigate nationalistic sentiment against other imported oils, while marketing different fractions according to use and purpose,” said Lee.