Glove, Glove, Glove and GLOVE!! Recent months, weeks, days and even second, all retailers are into the glove news, results and most important of all the share price. It has been a wild ride for most investors. The decision involved include, To buy? To take profit? To cut loss? To jump on the bandwagon, Do nothing? All these decisions have been playing inside the investors head.
While everyone is focusing on glove counters, many have forgotten that our CPO Price has been on the rise for the past few months. Bear with us as we will be sharing with you some statistics and charts so we won't be bored down by just words.
Chart 1.0 Malaysia Palm Oil Futures Price Chart
Approximate 30% increased in CPO price to a range of 2600 from the low of 1900 in May 2020.
Table 1.0 Malaysia CPO Export
CPO exports have been on the rise after MCO has been lifted. As shown in the above table 1.0, the export in June and July 2020 have been increasing as compared to 2019. The question is which countries are we exporting to?
Table 2.0 Malaysia Export to Other Countries
The increased in our exports were mainly coming from China. In short, trade war between China and US will benefit Malaysia (as a replacement of soy bean) CPO Plantation industry. We should be able to see our export continue to grow as China economy is recovering from the pandemic at a tremendous phase and India will be importing more from Malaysia as the Malaysian Government have decided to keep its export duty on crude palm oil for August unchanged at zero percent (citing the national customs department).
According to news, “the Southeast Asian nation said in May it would defer the imposition of export duties on crude palm oil to Dec. 31 in efforts to boost palm oil exports and expand into new markets.” This could further improve the demand for our CPO until the year end (for another 6 months).
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