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Daily Times Pakistan


http://www.dailytimes.com.pk/default.asp?page=2013%5C12%5C06%5Cstory_6-12-2013_pg10_3

KARACHI: Malaysian Palm Oil Council (MPOC) and Malaysian Palm Oil Board (MPOB) will be organising the 3rd Malaysia-Pakistan Palm Oil Trade Fair and Seminar in Karachi from January 15-17, 2014. The theme of this year’s conference is “Meeting Pakistan’s Emerging Oils and Fats Diversity Through Malaysian Palm Oil”. Minister of Plantation Industries Datuk Amar Douglas UggahEmbas of Malaysia will officially open the event. The conference will be a platform for presentations from leading international and local speakers. Thomas Milkie of Oil World, David Jackson of LMC, Dr Yusof Basiron of MPOC and Dr ChooYeun May of MPOB will also address. The seminar will provide opportunities for oils and fats manufacturers, traders, economists and senior government officials of both Malaysia and Pakistan to further enhance and strengthen the palm oil trade in Pakistan.

BlackSeaGrain.com
http://www.blackseagrain.net/novosti/palm-oil-reserves-in-malaysia-seen-climbing-as-exports-drop

Palm oil stockpiles in Malaysia probably jumped to the highest level in eight months as exports from the world’s second-biggest producer declined for the first time since May, a Bloomberg survey showed. Futures fell.

Inventories expanded 6.2 percent to 1.96 million metric tons in November from a month earlier, according to the median of six estimates from a plantation company, analysts and traders. That’s the highest since March and 24 percent less than a year earlier, according to data from the Malaysian Palm Oil Board, which may release official data on Dec. 10. Exports dropped 5.4 percent to 1.57 million tons, while output fell 2.6 percent to 1.92 million tons, the survey showed.

Palm oil rallied into a bull market last month and is heading for the first annual advance in three years on speculation that output from top producer Indonesia may drop for the first time since 1998. Lower supplies and Indonesia’s push for higher biodiesel usage will keep prices between 2,600 ringgit ($808) to 2,900 ringgit a ton until March, according to Dorab Mistry, director at Godrej International Ltd.

“Prices will be supported at these levels because although inventories are higher, this should be the peak,” said Alan Lim Seong Chun, an analyst at Kenanga Investment Bank Bhd. “The increase in stockpiles was because of the drop in exports due to a lack of major festivals in the near term and also the colder weather in the Northern Hemisphere.”

Seasonal Decline

Reserves will decline in December as production drops seasonally, Lim said. Output of the oil used in everything from candy to biofuels is typically highest from June to October and tapers off from November due to growing cycles.

Futures climbed 8.3 percent this year to 2,641 ringgit on the Bursa Malaysia Derivatives in Kuala Lumpur after slumping a combined 36 percent in the past two years. Prices rallied to 2,692 ringgit on Nov. 22, the highest since September 2012.

Indonesian output will decline by 500,000 tons to 27.5 million tons this year, before rebounding to 30.5 million tons in 2014, Mistry told a conference in Bandung, Indonesia, on Nov. 29. The retreat this year would be the first drop since 1998, according to data from the U.S. Department of Agriculture. Production in Malaysia will climb to 19.4 million tons this year from 18.8 million in 2012, said Ivy Ng, an analyst at CIMB Investment Bank Bhd.

“Stockpiles are still much lower than a year ago and it’s still below the 2 million-ton mark,” Ng said. “We are at the end of the high production season, so people won’t be too worried about the higher stock situation.”

Output Drops

Stockpiles in Malaysia have stayed below 2 million tons since April after reaching a record of 2.63 million tons in December last year. Imports were at 20,000 tons last month, unchanged from October, according to the median of five estimates. Output totaled 17.6 million tons in the first 11 months, according to official data for the first 10 months and the median estimate for November. That compared with 17 million tons a year earlier, board data showed.

Exports may have fallen due to the narrowing discount to soybean oil as consumers switch to the substitute, Ng said. The spread was at $67.42 a ton on Dec. 4, compared with the average $257 this year, data compiled by Bloomberg shows.

BlackSeaGrain.com
http://www.blackseagrain.net/novosti/palm-oil-reserves-in-malaysia-seen-climbing-as-exports-drop

Palm oil stockpiles in Malaysia probably jumped to the highest level in eight months as exports from the world’s second-biggest producer declined for the first time since May, a Bloomberg survey showed. Futures fell.

Inventories expanded 6.2 percent to 1.96 million metric tons in November from a month earlier, according to the median of six estimates from a plantation company, analysts and traders. That’s the highest since March and 24 percent less than a year earlier, according to data from the Malaysian Palm Oil Board, which may release official data on Dec. 10. Exports dropped 5.4 percent to 1.57 million tons, while output fell 2.6 percent to 1.92 million tons, the survey showed.

Palm oil rallied into a bull market last month and is heading for the first annual advance in three years on speculation that output from top producer Indonesia may drop for the first time since 1998. Lower supplies and Indonesia’s push for higher biodiesel usage will keep prices between 2,600 ringgit ($808) to 2,900 ringgit a ton until March, according to Dorab Mistry, director at Godrej International Ltd.

“Prices will be supported at these levels because although inventories are higher, this should be the peak,” said Alan Lim Seong Chun, an analyst at Kenanga Investment Bank Bhd. “The increase in stockpiles was because of the drop in exports due to a lack of major festivals in the near term and also the colder weather in the Northern Hemisphere.”

Seasonal Decline

Reserves will decline in December as production drops seasonally, Lim said. Output of the oil used in everything from candy to biofuels is typically highest from June to October and tapers off from November due to growing cycles.

Futures climbed 8.3 percent this year to 2,641 ringgit on the Bursa Malaysia Derivatives in Kuala Lumpur after slumping a combined 36 percent in the past two years. Prices rallied to 2,692 ringgit on Nov. 22, the highest since September 2012.

Indonesian output will decline by 500,000 tons to 27.5 million tons this year, before rebounding to 30.5 million tons in 2014, Mistry told a conference in Bandung, Indonesia, on Nov. 29. The retreat this year would be the first drop since 1998, according to data from the U.S. Department of Agriculture. Production in Malaysia will climb to 19.4 million tons this year from 18.8 million in 2012, said Ivy Ng, an analyst at CIMB Investment Bank Bhd.

“Stockpiles are still much lower than a year ago and it’s still below the 2 million-ton mark,” Ng said. “We are at the end of the high production season, so people won’t be too worried about the higher stock situation.”

Output Drops

Stockpiles in Malaysia have stayed below 2 million tons since April after reaching a record of 2.63 million tons in December last year. Imports were at 20,000 tons last month, unchanged from October, according to the median of five estimates. Output totaled 17.6 million tons in the first 11 months, according to official data for the first 10 months and the median estimate for November. That compared with 17 million tons a year earlier, board data showed.

Exports may have fallen due to the narrowing discount to soybean oil as consumers switch to the substitute, Ng said. The spread was at $67.42 a ton on Dec. 4, compared with the average $257 this year, data compiled by Bloomberg shows.

Bloomberg
http://www.bloomberg.com/news/2013-12-05/palm-oil-leader-wilmar-bans-deforestation-in-sustainability-push.html

Wilmar International Ltd. (WIL), the largest palm-oil trader, is pursuing efforts to reduce deforestation and make its products more sustainable.

The company will ensure that its plantations and suppliers protect some forests and abstain from using fire to clear land, Singapore-based Wilmar said today in a statement. It also bans development on high-carbon-stock landscapes including peatlands as part of a larger conservation effort.

“We can produce palm oil in a way that protects forests, clean air and local communities, all while contributing to development and prosperity in palm oil growing regions,” Chief Executive Officer Kuok Khoon Hong said in the statement. “There is a strong and rapidly growing demand for traceable, deforestation-free palm oil, and we intend to meet it as a core element of our growth strategy.”

Wilmar also signed an agreement with Unilever (UNA), the second-largest manufacturer of consumer goods, to accelerate the integration of sustainable palm oil into products. Unilever last month said that by the end of 2014, all of its supplies will be traceable to known sources.

To contact the reporter on this story: Justin Doom in New York at This email address is being protected from spambots. You need JavaScript enabled to view it.

To contact the editor responsible for this story: Reed Landberg at This email address is being protected from spambots. You need JavaScript enabled to view it.