weak exports


Japan’s economy grew 0.3pc in Q4 2018

TOKYO, Feb 14 — Japan’s economy expanded in the final quarter of 2018 as the negative impact from a series of natural disasters over the summer receded, government data showed today. The world’s third largest economy benefitted from a rise in…

SERC: Clarity, consistency needed in fiscal reforms to restore investor sentiment

KUALA LUMPUR: The Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said the priority for the government right now should be on exuding certainty, clarity and consistency in embarking on fiscal reforms to restore investor sentiment and preventing the economy from slowing down.

At a media briefing held this morning, he noted that 2019 is the year of execution and implementation of the plans laid down in the Budget 2019.

Given the country’s debt and liability position, Lee said while political and institutional reforms are already underway, the government needs to further fine-tune macroeconomic reforms, some of which have already taken place under the previous administration.

“The government has to have a healthy balance sheet so that they can support the economy in terms of fiscal spending and giving out incentives,” he added.

SERC has projected Malaysia to record a gross domestic product (GDP) growth of 4.7% in 2018 and 2019, with domestic demand expected to be the engine for growth amid slowing global economy and weak exports.

TH Plantations’ Q3 net loss due to lower prices

PETALING JAYA: TH Plantations Bhd suffered a net loss of RM19.80 million during the third quarter ended Sept 30, 2018 compared with a net profit of RM15 million a year ago due to lower prices of crude palm oil (CPO) and palm kernel (PK).

The group said in a statement, the average realised CPO price recorded for the quarter was RM2,095 per metric tonne, which was 18% lower than the price recorded a year ago while the average realised PK price was RM1,724 per metric tonne, 22% lower than a year ago.

The group said that profit margins were significantly squeezed by lower prices and volumes during the quarter. In addition, it did not recognise any fair value in forestry during the quarter.

“Additionally, lower fresh fruit bunches (FFB) production (down by 4% from the corresponding period) and CPO production (down by 5%) as well as weaker sales (CPO sales down by 11% while PK sales down by 18%) also negatively impacted revenue,” it said.

Revenue for the quarter fell 25.57% to RM140.91 million from RM189.31 million a year ago due to lower average realised prices of CPO, PK and FFB as well as lower sales volume of CPO and PK.

For the nine months ended Sept 30, 2018, the group posted a net loss of RM16.37 million compared with a net profit of RM50.68 million a year ago while revenue fell 21.47% to RM400.70 million from RM510.27 million a year ago.

During the period, the group’s FFB production rose 4% but this was offset by the 18% drop in average realised CPO prices against last year and 24% drop in average realised PK prices. CPO and PK sales volumes also fell by 5% and 11% respectively.

“The group’s bottom line was also negatively impacted by lower fair value on government grant as well as lower fair value change, both for the group’s forestry assets, which collectively led to a variance of almost RM20 million to its year-to-date profit at operating level,” it said.

TH Plantations CFO Mohamed Azman Shah Ishak said the industry is seeing a repeat of the challenging operating conditions that plagued the industry about two to three years ago, with unfavourable market dynamics pushing prices lower while the high stockpile has exacerbated the low price environment.

“On top of these, the industry continues to grapple with labour issues and higher wages, environmental pressure as well as stiff competition from other vegetable oils. TH Plantations, as a pure upstream player, is visibly more affected by the current challenges,” he added.

Improved production and weak exports across the industry have led to a surge in CPO stock levels in the country, which may delay the recovery of palm product prices.

The group expects prices to remain range-bound in the near-term, causing continued pressure on profit margins for the industry, particularly when stock levels peak in November and December 2018.

However, demand is expected to pick up in 2019, driven by higher exports to China.

US retail sales increase modestly, consumer spending strong

WASHINGTON, Oct 16 — US retail sales barely rose in September as a rebound in motor vehicle purchases was offset by the biggest drop in spending at restaurants and bars in nearly two years. But other details of the report from the Commerce…

Crude Palm Oil Weekly Report – October 13th, 2018

Malaysia’s palm oil futures (FCPO) jumped higher on Friday, rebounding from two sessions of losses, mainly due to gains in soy oil on Friday which staged a rebound. Massive loss in US stocks and commodities market as well as weak export data and rising September stockpiles were the main causes of sharp declines from previous […]

Facebook, energy stocks bog down Wall Street, tariff woes loom

WASHINGTON, Sept 5 ― US stock indexes were lower today, weighed down by Facebook, energy stocks and concerns over the possibility of President Donald Trump going through with plans to slap new tariffs on Chinese goods as early as this week….

Crude Palm Oil Weekly Report – May 26, 2018

Malaysian palm oil futures ended mixed this week despite achieved a seven-week high due to numerous factors, notably the strengthening of US’ soybean oil and crude oil prices as well as the weaker ringgit. However, this was offset by weak exports data. The benchmark crude palm oil futures (FCPO) contract rose 0.24 per cent to […]

Crude Palm Oil Weekly Update – 26 August 2017

Malaysian palm oil futures reversed last week losses and rose, surging to five month high, on expectations that production growth will be slower than previously forecast and tracking soyoil surges on Chicago Board of Trade (CBOT). The benchmark crude palm oil futures (FCPO) contract rise 2.57 per cent to RM2,751 on Friday, which is RM69 […]

Crude Palm Oil Weekly Report – 25 February 2017

Malaysian palm oil futures broke a new low on strengthening ringgit and expectations of improving production, above 2,750 price level. Crude palm oil futures (FCPO) benchmark May 2017 contract settled at 2804 on Friday, losses 54 points or 0.18 per cent from 2858 last Friday. Trading volume increase to 339,729 contracts from 253,211 contracts from […]

Palm oil hits near 4-month low on rising output, weak demand

Palm oil hits near 4-month low on rising output, weak demand

KUALA LUMPUR (Feb 23): Malaysian palm oil futures fell on Thursday evening, charting a fifth session of losses in six and hitting their lowest in nearly four months as concerns persisted over rising production and weak exports.

Benchmark palm oil futures for May on the Bursa Malaysia Derivatives Exchange declined 1% to RM2,782 (US$625.59) a tonne at the close of trade. The contract dropped to as low as RM2,743 in the second half of trading, its weakest since Nov 4.