Dear  Investors,

Many people erroneously think that Palm oil bull run is game over due to Palm oil being Glove 2 and because of other factors of chart telling them trend is over

We beg to differ. And these are our Reasons to be Still Bullish in Palm oil

 

1) PALM OIL IS NOT GLOVE

Glove bull run came crashing down because of China Factor, China's glove factories mushroomed when they saw the sudden rise of new glove billionaires and they came to join the party. Leading to TOTAL OVERPRODUCTION, GLUT & FIERCE  PRICE WAR

From ASP Premium now Gloves facing ASP Discount & So losses abound.

Palm oil on the other hand cannot be set up in 6 to 9 short months unlike glove

It takes up to 9 or 10 years from buying raw land, landscaping, planting to 1st drop of cooking oil

So there is a HIGH TIME BARRIER

 

2) INDON SUDDEN EXPORT RESUMPTION IMPACT WILL BE FLEETING

While the Temporary surge of Indon's 7 Million extra surplus Tons in the resumption of export we think it will only take few short weeks to clear. Total Palm oil consumption on world market is 73 Million Tonnes. So about 6 Million Tonnes will be taken up monthly

At the same time war in Ukraine still hampered sunflower oil production, storage & export even if export of grain is on truce.

Canola crop in Canada has shrunk by 7% this year after last year's drought in Canada

 

3) HIGH OIL PRICES DUE TO CONSTRAINT IN PRODUCTION WILL KEEP OIL ABOVE USD100 RANGE

AND WILL BOOST BIOFUEL USE. AND BY PROXY PALM OIL PRICES WILL BE SUSTAINED

PLUS JOE BIDEN ELECTION MANDATE TO PIVOT INTO RENEWABLE ENERGY HAS SPURRED LOTS OF NEW RENEWABLE ENERGY FACTORIES NEEDING SOYBEAN AS FEED STOCK

 

4) PALM OIL COST & SALE FACTOR STILL EXCELLENT

YES! THERE WAS A SUDDEN SURGE OF PALM OIL PRICES OVER RM7,000 LEADING TO SPIKE IN PALM OIL STOCK PRICES

But the subsequent fall below Rm4,000 to Rm3,700 now does not warrant Palm oil Stocks to be sold lower than its Pre-Boom price

Many have been recklessly thrown down into OVESOLD in panic which is unwarranted

As such we think this is the best of time to bargain buy before they all rebound up

Think  soberly & calmly.

Cost of Cpo production for THPLANT, TSH, INNO & OTHERS WERE RM1,500 PER TON

With higher labour & fertilizer cost has gone up to Rm1,800

Now Cpo is still at Rm3,700 per ton

That is Rm1,900 profit a ton or more than 100%

Some predict CPO will fall below Rm3,000

We think it is just too premature to give such forecast 

Unless Crude oil also crash back to USD60 level, rise of Competing Vege oil like Soyoil, Sunflower oil & Canola oil in Unison it is hard for palm oil to sell at too wide a discount to them

Right now in EU Heatwave wiping out crops & more black swan unknown out there.

 

5) THE GREATEST EARNINGS QUARTER FOR PALM OIL IS AUGUST 2022 (Reporting for April - June 2022) 

Most Palm oil companies have witnessed higher FFB this coming Qtr compared to last Qtr like

 SWKPLANT (Cpo Production up 26.9%)

JAYA TIASA (Up 26%)

TSH RESOURCES (Up 20.9%)

TAANN (Up 20%)

THPLANT (Up 19%)

SOP (Up 11%)

This period also witnessed the high Cpo price average of Rm6,552 per ton (Highest World record in Palm oil History)

 

6) PALM OIL CO INSIDERS & FUNDS ARE BUYING

While Market sold down we see Directors of Palm oil Co are buying

TSH RESOURCES

TAANN

SWKPLANT

UMALACCA

SUBUR TIASA

OTHERS

ALL MOSTLY BUYING NO SELLING

 

ALSO KWAP FUNDS BUYING SIMEDARBY PLANT

EPF BUYING KLK & OTHERS

 

7) WHAT WILL HAPPEN IN AUGUST 2022 FOR PALM OIL STOCKS?

A BEST STRING OF SPECTACULAR PROFITS & NEW RECORDS!

HIGH DIVIDENDS

SPECIAL DIVIDENDS

POSSIBLE FREE BONUS

POSSIBLE FREE WARRANTS

POSSIBLE TAKEOVER (LIKE KLK TAKING OVER IJMPLANT)

ALL OF THE ABOVE COMBINED

SO STAY INVESTED.

SEE IF THEY WILL COME TRUE.

JUST ONE MONTH AWAY

 

WARMEST & HEARTIEST REGARDS

Calvin Tan

 

Please buy or sell after doing your own due diligence or consult your remisier/fund manager.