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Agriculture Ministry Predicts La Nina Will Reduce CPO Production by 5

01

Sep

Agriculture Ministry Predicts La Nina Will Reduce CPO Production by 5

If it drops by 5%, then the crude palm oil (CPO) production this year will be around 29.64 million tons compared to last year's production of 31.20 [...]

Agriculture Ministry Predicts La Nina Will Reduce CPO Production by 5. If it drops by 5%, then the crude palm oil (CPO) production this year will be around 29.64 million tons compared to last year's production of 31.20 million tons. While in early 2016, the Ministry of Agriculture projected this year's CPO production to be around 31 million to 32 million tons.The Director of Annual Crops and Refreshments at the Ministry of Agriculture's Directorate General of Plantations, Dwi Praptomo Sudjatmiko, said that the government's concerns were based on the prolonged and even extreme rainfall. If rains continue to occur, the oil palm plants will not be able to produce optimally because they do not get enough sun.`This very high rainfall will affect the fertilization process which will result in higher humidity levels and that is not good for the plants,` said Praptomo.In addition, the effects of waterlogging in the rainy season could potentially lead to oxygen supply difficulties for the oil palm roots. This condition of course results in the fertilization process of the oil palm trees being hampered and reducing production. For that reason, he hopes that the La Nina will remain within normal levels in order for CPO production to remain high and meet targets.According to Dwi, the oil palm plant is a rapidly growing commodity and is encouraging more balanced economic distribution because its plantations are highly concentrated on the islands outside of Java. Oil palm plantations are a strategic sub-sector that contributes significantly to the country's foreign exchange.In 2015, palm oil exports and its derivative products amounted to 20.30 million tons. Nevertheless, the sub-sector also faces a number of challenges, particularly those related to productivity. http://industri.kontan.co.id/news/kemtan-prediksi-la-nina-gerus-produksi-cpo-5

Council of Palm Oil Producers to be operational by January 2017

01

Sep

Council of Palm Oil Producers to be operational by January 2017

"So we form an organization to strengthen the capability of crude palm oil (CPO)," said Industry Minister Airlangga Hartarto in Jakarta, Thursday. [...]

Council of Palm Oil Producers to be operational by January 2017. `So we form an organization to strengthen the capability of crude palm oil (CPO),` said Industry Minister Airlangga Hartarto in Jakarta, Thursday. The industry minister conveyed the matter after a visit to neighboring country Malaysia on Wednesday (31/8) to discuss the operation of CPOPC. The Director General of Agro Industry of Industry Ministry Panggah Susanto, who accompanied Airlangga, said the two biggest palm oil producing countries in the world formulate the operation of CPOPC, which plans to have a secretariat in Jakarta. Panggah explained that CPOPC will create operational standard for palm oil industry from upstream or plantation to downstream or processing. Besides that, continued Panggah, CPOPC will also foster palm oil farmers from the two countries to increase their skills, provide training on stock management, and form a palm oil green economic zone. `The Industry Ministry will later focus to form this palm oil economic zone. Including regarding the criteria and its principles,` said Panggah. Three palm oil industrial areas in Indonesia and Malaysia will be selected for the initial stage of the palm oil economic zone project realization. In Indonesia, the government has set up three areas, namely the industrial areas in Dumai, Sei Mangke, and East Kalimantan. After CPOPC is running, Panggah added, some palm oil producing countries will join, such as Brazil, Nigeria, Ivory Coast, and Thailand. http://www.antaranews.com/berita/582055/dewan-produsen-sawit-mulai-beroperasi-januari-2017

01

Sep

Global oil prices fall

The U.S. benchmark, West Texas Intermediate (WTI) crude for October delivery, lost 1.72 U.S. dollars to settle at 44.70 dollars a barrel on the New [...]

Global oil prices fall. The U.S. benchmark, West Texas Intermediate (WTI) crude for October delivery, lost 1.72 U.S. dollars to settle at 44.70 dollars a barrel on the New York Mercantile Exchange. The European benchmark, Brent crude for October delivery, decreased by 1.34 dollars to close at 47.04 dollars a barrel on the London ICE Futures Exchange. The U.S. Energy Information Administration (EIA) said Wednesday in its weekly report that the U.S. crude oil inventories increased by 2.3 million barrels to 525.9 million barrels in the week ending Aug. 26, more than market consensus of an increase of 921,000 barrels.Analysts said that the data fueled concerns among investors about persistent oversupply in the market. Oil prices also came under pressure as a strong U.S. dollar dampened market sentiment, making the dollar-denominated oil less appealing to holders of other currencies.The U.S. dollar index, which measures the greenback against six major currencies, stood at a three-week high of 96.043 in late trading on Wednesday, Xinhua reported. (Uu.A026)
Editor: Maryati
http://www.antaranews.com/berita/581971/harga-minyak-dunia-turun

01

Sep

Sawit Sumbermas renews management

"Although the natural palm oil industry had difficulties due to El Nino last year and is still suffering the impacts this year and the next, we are [...]

Sawit Sumbermas renews management. `Although the natural palm oil industry had difficulties due to El Nino last year and is still suffering the impacts this year and the next, we are optimistic that the company's financials will continue to improve, as can be seen from the positive progress in financial indicators,`  President Director of PT Sawit Sumbermas Sarana Tbk. (SSMS) Vallauthan Subraminam told the press after the company's Extraordinary General Meeting of Shareholders (RUPSLB) in Jakarta, Wednesday. At the RUPSLB attended by hundreds of shareholders, shareholders agreed to replace Rimbun Situmorang as president director, replacing him with Vallauthan Subraminam and appointing Ramzi Sastra as director.  Vallauthan said that the company's new management is optimistic that it will be able to transform the plantation company whose palm oil plantation is located in Central Kalimantan into a thriving palm oil industry. Independent Commissioner Marzuki Usman said that the appointment of a new president director is to refresh the company's efforts to address future challenges in the palm oil industry, which are increasingly difficult, especially when the government has stated that the industry is one of the main pillars of the Indonesian economy. `This is certainly a major challenge for the palm oil industry in Indonesia, so oil palm plantation companies in Indonesia must be able to grow faster,` he said. Vallauthan said that the company's financial report for the first half of 2016 showed that the company was able to pocket a net income of Rp194.8 billion. `Even though the price of crude palm oil in 2015 was less and started to improve in the second quarter of 2016, the company's performance has still not improved because it was also impacted by the sharp decline in production,` he said. In terms of business development, he said, the company is open to opportunities to acquire in order to maintain and expand its areas outside of its current plantations. The area currently under cultivation is 70,940 hectares, and as of the end of 2015, the amount of fresh fruit bunches processed in the factory reached 1.35 million tons, producing 3,121,238 tons of CPO. `The company will continue to increase its oil palm plantation area from its current 100,000 hectares by acquiring new lands,` he said.
Editor: Ruslan Burhani
http://www.antaranews.com/berita/581913/sawit-sumbermas-ganti-direksi

CPO PRICES AUG 29: Ringgit Leads Emerging Market Currency Losses, Palm Climbs

29

Aug

CPO PRICES AUG 29: Ringgit Leads Emerging Market Currency Losses, Palm Climbs

CPO futures for November 2016, the most active contract on Bursa Malaysia, rose 0.16% or 4 points to 2,556 ringgit per ton at 10.07 WIB. Palm oil [...]

CPO PRICES AUG 29: Ringgit Leads Emerging Market Currency Losses, Palm Climbs. CPO futures for November 2016, the most active contract on Bursa Malaysia, rose 0.16% or 4 points to 2,556 ringgit per ton at 10.07 WIB.
Palm oil futures previously opened up 0.31% or 8 points at 2,560 ringgit per ton.
On Friday (26/8/2016), the CPO price for the November contract closed lower by 0.35% or 9 points to 2,552 ringgit per ton alongside the strengthening performance of the Malaysian ringgit.
In the meantime, the exchange rate of the ringgit against the US dollar this morning depreciated by 0.50% to 4,0367 at 10.22 WIB.
The ringgit led depreciation of emerging market currencies with the won after the dollar strengthened to its highest level following the statement from the Fed that spurred predictions of a US rate hike in the near future.
“Asian currencies started the week lower as markets priced in a higher chance of a September hike by the Fed – a significant shift from a few weeks ago when liftoff was not expected until late 2017 or early 2018,” said Khoon Goh, Australia & New Zealand Banking Group Ltd.’s head of Asia research, as reported by Bloomberg today.
CPO November 2016 Contract Price Movements

Date

Level

Change

29/8/2016(at 10.07 WIB)
2.556
+0.16%

26/8/2016

2.552

-0.35%

25/8/2016

2.561

-1.50%

24/8/2016

2.600

+0.85%

23/8/2016

2.578

+1.38%

Source: Bloomberghttp://market.bisnis.com/read/20160829/94/579209/harga-cpo-29-agustus-ringgit-pimpin-pelemahan-di-emerging-markets-sawit-hijau

The Fed's announcement is predicted to cause turmoil in Asian currencies

29

Aug

The Fed's announcement is predicted to cause turmoil in Asian currencies

A Fed Fund Rate hike is widely expected to happen in September 2016. Raymond Yeung, chief economist for Greater China at Australia & New Zealand [...]

The Fed's announcement is predicted to cause turmoil in Asian currencies. A Fed Fund Rate hike is widely expected to happen in September 2016.
Raymond Yeung, chief economist for Greater China at Australia & New Zealand Banking Group in Hong Kong, said Yellen’s comments had created volatility that would probably last at least three months.
`US funding costs will rise. Asian currencies will come under pressure,` Yeung said, according to Bloomberg on Sunday, Aug. 28, 2016.
He said that some Asian nations would be willing to shoulder capital outflows in return for a boost to their export competitiveness from weaker currencies.
`A stronger U.S. would actually help global sentiment and export-oriented economies like Singapore and the rest of Asia,` added Song Seng Wun, an economist at CIMB Private Banking in Singapore.
Goldman Sachs Group Inc. has raised the probability of a September hike to 40 percent, from 30 percent previously, according to a note from economist Jan Hatzius.
ANZ expects a tightening in December, with scope for a move in September if Yellen’s speech signals that.

Writers
: Sakina Rakhma Diah Setiawan

Editor
: Erlangga Djumena

Source
: Bloomberg,

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