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Last Updated: 26 February 2024

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KOTA KINABALU: Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said Malaysian palm oil exports to China will be increased by 3.4 million metric tonnes this year.

“We are building on last year’s agreements to strengthen agricultural and palm oil cooperation,” he said at the Malaysia-China Chamber of Commerce Sabah branch Lunar New Year Celebration 2024, here. 

The celebration commemorated the 50th anniversary of Malaysia-China diplomatic relations. 

“Currently, China is Malaysia’s second-largest palm oil export market. In 2023, Malaysia exported palm oil worth RM5.66 billion (1.47 million metric tonnes) to China,” he said. 

China is an important market for downstream palm oil industries and palm oil products in Malaysia. 

“My Ministry, through the Malaysian Palm Oil Board, has collaborated with several prominent Chinese food conglomerates such as Fujian Panpan Foods Group, Dali Foods Group and Grains Oils and Foods Co. Ltd, on various research and development initiatives for palm oil plantations,” he said.

He said this aims to increase the value-added of palm oil in downstream products, including food ingredients (such as Mala hot pot), oleochemicals and animal feed.

“I am also pleased to learn that Grand Industrial Holding’s wholly-owned subsidiary, Grand Oils and Fats (Dongguan) Co. Ltd is the first facility outside of Malaysia and in the People’s Republic of China to be certified with Malaysian Sustainable Palm Oil Supply Chain Certification Standard (MSPO SCCS) since Oct 21, 2022,” he said.

He said these achievements reflect the close trade relations between Malaysia and China and the mutually beneficial cooperation established between the two countries. 

He also noted that during his tenure as Deputy Minister of Agriculture and Food Security last year, he actively promoted the protocol for fresh durian exports to China to be materialised this year. 

“This initiative seeks to bring fresh Malaysian durians, such as Musang King and Black Thorn, which are known for their high quality, to Chinese consumers allowing them to experience the authentic and delectable flavours of Malaysian durians,” he said. 

He also said during the 45th Asean Ministerial Meeting on Agricultural and Forestry last October, he held bilateral talks with China’s General Administration of Customs on agricultural product quarantine, resulting in six agreements and strengthening cooperation in agricultural product trade between the two countries, including durians, bird nests and aquaculture products. 

“Although I have moved to a different ministry, I am hopeful that all of these efforts commemorating the 50th anniversary of Malaysia-China diplomatic relations would be achieved one by one, boosting and cementing bilateral agricultural commerce and producing further economic gain,” he said. 

He also hoped to see the friendship between Malaysia and China remain strong, to achieve a brighter future by making Malaysia-China exchanges and interactions more dynamic and wonderful.

https://www.dailyexpress.com.my/news/229329/3-4-million-more-tonnes-palm-oil-for-china-minister/

Sumber : Daily Express

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Last Updated: 21 February 2024

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KUALA LUMPUR: BMI Country Risk & Industry Research (BMI), a product of Fitch Solutions Group Ltd, has made an upward revision to its forecast for the average price of Bursa Malaysia-listed third-month palm oil futures contracts in 2024 to RM3,750 per tonne from RM3,515 per tonne previously.

It said in a statement that in part, this reflects the subsequent persistence of price strength that started in the third quarter (3Q) of 2023, which saw contracts rose by 23.2 per cent between start-June and start-September.

At the same time, it said palm oil prices have more or less traded within five per cent of RM3,851 per tonne (+/- RM193 per tonne) since mid-2022.

Its revised forecast, however, does point to a softening of prices from its current levels through 2024, with palm contracts having traded at an average level of RM3,830 per tonne up to Feb 14, 2024.

"In the short term, we consider palm oil prices to be capped in light of price trends in the wider edible oils complex, expectations for large soya bean harvests in major producers and weak demand in China.

"Moreover, the impact of the El Niño event, now expected to dissipate between April and June 2024, on cultivation conditions in Indonesia and Malaysia is thought to be quite subdued," said BMI.

Meanwhile, the expected transition to La Niña conditions between June and August 2024 could weigh on market sentiment, testing price support.

BMI viewed that average palm oil prices would fall in 2025 relative to 2024, a reflection of a high base as well as the potential for a La Niña event to support oil palm cultivation, but at the same time have made an upward revision to its price forecast, now projecting that contracts would trade at an average level of RM3,500 per tonne.

However, it also reinforced the tail end of its price outlook in order to reflect a deceleration in the rate of palm oil export growth in Indonesia and Malaysia, which reflects the former’s commitment to higher domestic biodiesel blending mandates as well as a shift in oil palm production growth drivers in both markets.

"In our view, the world palm oil market will generate a production surplus of 2.0 million tonnes in the 2023/24 season, a three-season low.

"We forecast that this surplus will increase through the medium term, anticipating a surplus of 2.5 million tonnes in the 2024/25 season and season-on-season increases of 0.2-0.3 million tonnes thereafter," it said.

In terms of price, it maintained that average annual palm oil prices would decline through its forecast period, projecting mean prices of RM3,400 per tonne in 2026, RM3,300 per tonne in 2027 and RM3,205 per tonne in 2028.

Risk factors to its outlook include the development of biodiesel policies, the evolution of alternative edible oils’ prices and sustainable production efforts. – Bernama

https://www.thestar.com.my/business/business-news/2024/02/20/bmi-revises-2024-forecast-for-palm-oil-futures-contracts-to-rm3515-per-tonne

Sumber : The Star

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Last Updated: 19 February 2024

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KUCHING: Malaysia is on the right track to obtain the European Union’s (EU) "green light” in the near term for the recognition of the Malaysian Sustainable Palm Oil (MSPO) certification scheme, says Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who is also the Energy Transition and Water Transformation Minister, said the EU leadership is expected to make the announcement by June at the latest.

"We want MSPO to be recognised so that our smallholders are not left out or marginalised following the implementation of the EU Deforestation Regulation (EUDR).

"This is good news. With our MSPO being recognised by the EU, locally-produced commodity products would not be required to be audited by them,” he told reporters after the 2024 annual grant handover ceremony for the Petra Jaya federal constituency’s village development and security committees (JKKKs) here today.

He said this was shared during a brainstorming session with an EU delegation that has been in the state since last Wednesday for the launch of Invest Sarawak and Business Day programme.

In May last year, Fadillah, who was then holding the Plantation and Commodities Minister portfolio, jointly led a mission to Brussels, Belgium, to convey the stance of the Council of Palm Oil Producing Countries (CPOPC) members on the EUDR implementation.

As a CPOPC member, he said, Malaysia is committed to be involved actively through the platform and continue the agenda of countering Western countries’ negative campaigns against palm oil.

At the ceremony on Saturday (Feb 17), Fadillah, who is also the Member of Parliament for Petra Jaya, presented grants totalling RM255,000 to 85 JKKKs under his constituency. - Bernama

https://www.thestar.com.my/news/nation/2024/02/18/malaysia-on-right-track-for-mspo-recognition-from-eu-says-fadillah

Sumber : The Star

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Last Updated: 15 February 2024

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KUALA LUMPUR, Feb 14 ― Kenanga Research has forecast the price of crude palm oil (CPO) to trade range-bound and average around RM3,800 per tonne in a tight outlook for edible oils in 2024.

The research house said that with supply matching demand or possibly dipping into a small deficit, the commodity is expected to end the year with inventory coming in below the level it started at.

“The main issue is demand for edible oils which is underpinned mainly by population and income growth that is expected to continue growing at 3-4 per cent year-on-year (y-o-y), but supply is affected by tightening regulations, unpredictable weather and even geopolitical disruptions.

“Specifically for palm oil, Indonesia, the top producer and also user, looks set to manage exports till Hari Raya in April while India, a big palm oil importer, is likely to maintain generous levels of inventory pending an election in the first half of this year,” it said in a research note, maintaining a “neutral” call on the plantation sector.

RHB Investment Bank Bhd also maintained its neutral call on the plantation sector with the expectation of a higher CPO price environment in the first half of 2024.

The investment bank said it believes seasonally weaker output and the El Nino impact are anticipated to lower production in the months ahead.

“Although production is set to taper off in the coming months, export market demand may make a comeback in anticipation of the Aidilfitri festivities and restocking activities as stock levels should run down further. The anticipated stronger demand in the export market could lead to Malaysian palm oil stocks dropping below the two million tonne mark by next month, thus providing a boost to CPO prices,” it added.

Meanwhile, Public Investment Bank Bhd noted that despite the declining inventory trend, palm oil prices have remained range-bound in the last few months.

“Given the shorter working month in February, we expect inventories to fall below the psychological two million tonne level by end-February,” said the bank, which is also neutral on the plantation sector. ― Bernama

https://www.malaymail.com/news/money/2024/02/14/analysts-neutral-on-plantation-sector-with-crude-palm-oil-seen-averaging-rm3800-per-tonne/117962#google_vignette

Sumber : Malay Mail