Bakke: CPO price ex­pected at RM2,250-RM2,500

The Star Malaysia - StarBiz - - News -

PE­TAL­ING JAYA: Sime Darby Plan­ta­tion Bhd ex­pects crude palm oil (CPO) prices to range be­tween RM2,250 and RM2,500 per tonne in the sec­ond half of 2018.

Ex­ec­u­tive chair­man/manag­ing di­rec­tor Tan Sri Mohd Bakke Salleh said CPO prices hit the floor price of RM2,100 per tonne in July.

“As such, this can only mean that prices have bot­tomed out and are poised for a re­cov­ery. One fac­tor to drive prices higher is In­done­sia’s B20 man­date start­ing Septem­ber.

“We hope to see an in­creased util­i­sa­tion of biodiesel to four mil­lion tonnes this year from 2.5 mil- lion tonnes last year,” he told re­porters af­ter an­nounc­ing the com­pany’s per­for­mance for the fi­nan­cial year ended June 30, 2018 here yes­ter­day.

Mohd Bakke, who is also Malaysian Palm Oil Board chair­man, said over­all sentiment to­wards the com­mod­ity had also im­proved given the up­trend in crude oil prices.

Mean­while, he an­tic­i­pates de­mand from China to im­prove as a re­sult of Sime Darby Plan­ta­tion’s me­moran­dum of un­der­stand­ing (MoU) with Cofco Group Co Ltd in China to in­crease the trade vol­ume of palm prod­ucts.

Com­ment­ing on de­mand from In­dia, chief op­er­a­tion of­fi­cer (down­stream) Mohd Haris Mohd Ar­shad said CPO is fac­ing in­tense com­pe­ti­tion against other ed­i­ble oils there, but, the cur­rent low price could po­ten­tially pro­vide an in­cen­tive for man­u­fac­tur­ers to opt for it.

On CPO pro­duc­tion, chief op­er­a­tion of­fi­cer (up­stream) Mo­hamad Helmy Oth­man Basha said there had been a drop in pro­duc­tion when com­pared to July against the same month of 2017, which seems to be the case with other plan­ta­tion com­pa­nies in Malaysia.

“In to­tal, there could po­ten­tially be a drop in CPO pro­duc­tion for Malaysia this year com­pared with 19.92 mil­lion tonnes recorded last year.

“How­ever, the story for In­done­sia is dif­fer­ent be­cause com­pa­nies there are still ex­pe­ri­enc­ing high pro­duc­tion on a daily ba­sis,” he added.

For the 2018 fi­nan­cial year, Sime Darby Plan­ta­tion recorded a net profit of RM1.73bil com­pared with RM3.51bil in the 2017 fi­nan­cial year, while rev­enue was at RM14.37bil from RM14.78bil. — Bernama

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