POAS Daily Highlights 01 Jun 2020

Email: [email protected]

POAS Daily Highlights 01 Jun 2020

Palm Oil Association

of Singapore

Main Contract on Global Palm Oil markets

29/05/2020 Close Price Change (%) Volume Open Interest

APEX CRUDE PALM OIL Aug 20 537.00 0.61% 10733 3540

BMD CRUDE PALM OIL Aug 20 528.19 1.31% 20651 40950

DCE PALM OLEIN Sep 20 667.07 0.92% 917211 404358

MCX CRUDE PALM OIL Jun 20 844.29 1.25% 1540 2505

FX Markets

FX Close Previous Day Close Change (%) 10 Day Chart

USD INDEX 98.32 98.48 -0.16% . CNY/MYR 0.6137 0.6137 0.00% USD/MYR 4.3450 4.3480 -0.07% USD/CNY 7.1348 7.1447 -0.14% USD/INDIAN RUPEE 75.590 75.650 -0.08% USD/INDO RUPIAH 14575.0 14675.0 -0.68%

APEX CPO vs BMD FCPO Price Comparison

Contract Month APEX CPF

(DSP) BMD FCPO in USD (EOD)* Absolute Difference % Difference Jul-20 536.75 534.18 2.57 0.48% Aug-20 537.00 528.19 8.81 1.64% Sep-20 536.50 527.73 8.77 1.63% Oct-20 537.25 527.04 10.21 1.90% Nov-20 537.25 528.42 8.83 1.64% Dec-20 537.50 530.96 6.54 1.22%

Palm Oil Markets Analysis

APEX CPF vs BMD FCPO 30 Day Spread

APEX-BMD Differential BMD FCPO Active Month APEX CPO Active Month

-20 -15 -10 -5 0 5 10 15 20 490 500 510 520 530 540 550 29/ 5/20 20 18:0 0 29/ 5/20 20 17:0 5 29/ 5/20 20 16:1 0 29/ 5/20 20 15:1 5 29/ 5/20 20 14:1 5 29/ 5/20 20 12:0 5 29/ 5/20 20 11:1 0 29/ 5/20 20 10:1 5 28/ 5/20 20 17:4 0 28/ 5/20 20 16:4 5 28/ 5/20 20 15:5 0 28/ 5/20 20 14:5 5 28/ 5/20 20 14:0 0 28/ 5/20 20 12:0 5 28/ 5/20 20 11:1 0 28/ 5/20 20 10:1 0 27/ 5/20 20 17:5 0 27/ 5/20 20 16:5 5 27/ 5/20 20 16:0 0 27/ 5/20 20 15:0 5 27/ 5/20 20 14:1 0 27/ 5/20 20 12:1 5 27/ 5/20 20 11:2 0 27/ 5/20 20 10:2 5 27/ 5/20 20 9:15 (Unit:USD/MT)

APEX CPF vs FCPO 5 Day Spread

APEX-BMD Differential BMD FCPO Active Month APEX CPO Active Month

-67.07 537.00 604.07 -120 -70 -20 30 80 200 250 300 350 400 450 500 550 600 650 (Unit:USD/MT)

APEX CPF vs CME Soybean Oil 30 Day Spread

APEX-Soybean Oil Differential APEX CPO Active Month CME BO Active Month

-130.07 537.00 667.07 -200 -150 -100 -50 0 50 100 150 100 200 300 400 500 600 700 800 (Unit:USD/MT)

CPF vs DCE Palm 30 Day Spread APEX-DCE Palm Olein Differential APEX CPO Active Month DCE DCP Active Month

239.50 537.00 297.50 0 100 200 300 400 500 600 700 (Unit:USD/MT)

APEX CPF vs ICE LGO 30 Day Spread

APEX-LGO Differential APEX CPO Active Month ICE LGO Active Month

537.00 844.29 0 100 200 300 400 500 600 700 800 900 (Unit:USD/MT)

CPF vs MCX Palm 30 Day Spread

Crude Palm Oil (Indonesia): FOB Belawan/Dumai 547.50 Change (USD/MT) 5.00 Change (%) 0.92% 5 days average 537.00 20 days average 516.25 1 year average 575.42 year high 810.00 year low 452.50

Crude Palm Oil (Malaysia): FOB 548.39 Change (USD/MT) 8.66 Change (%) 1.60% 5 days average 475.60 20 days average 497.45 1 year average 567.70 year high 772.43 year low 454.43 Palm Olein (Malaysia):

FOB PKPG 565.00 Change (USD/MT) 10.00 Change (%) 1.80% 5 days average 554.38 20 days average 530.79 1 year average 595.67 year high 797.50 year low 487.50 Palm Olein (Malaysia):

CNF South China 592.00 Change (USD/MT) 0.00 Change (%) 0.00% 5 days average 574.00 20 days average 558.95 1 year average 618.61 year high 824.00 year low 519.00

Palm Olein Guangdong

4980 Change (RMB/MT) -20 Change (%) -0.40% 5 days average 4900 20 days average 4769 1 year average 5002 year high 6730 year low 4220 548.39 547.50 565.00 400 500 600 700 800 900 29/5/2020 15/5/2020 30/4/2020 20/4/2020 8/4/2020 27/3/2020 17/3/2020 5/3/2020 24/2/2020 12/2/2020 31/1/2020 20/1/2020 8/1/2020 26/12/2… 13/12/2… 3/12/2019 21/11/2… 11/11/2… 30/10/2… 17/10/2… 7/10/2019 25/9/2019 13/9/2019 2/9/2019 21/8/2019 8/8/2019 26 /7/2 01 9 16/7/2019 4/7/2019 24/6/2019 (Un it: US D/MT )

Palm Oil Price Comparison - Malaysia/Indonesia

Crude Palm Oil (Malaysia): FOB Crude Palm Oil (Indonesia): FOB Belawan/Dumai Palm Olein (Malaysia): FOB PKPG

4980 592.00 450 550 650 750 850 3840 4340 4840 5340 5840 6340 6840 7340 Uni ts : US D/MT ) Un its : CN Y/MT )

Palm Oil Price Comparison - China

Palm Olein Guangdong Palm Olein (Malaysia): CNF South China

-138.30 -800 -600 -400 -200 0 200 400

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(Unit:CNY/MT)

Guangdong Palm Olein (24 degree) Spot vs Palm Olein (Malaysia): CNF South China Profit Comparison

Other Updates:

PTP Tenders – Indonesia

Dates PTP (IDR '000) PTP (USD) USD/IDR

29-May 7000 535.12 14733

28-May 6975 532.27 14769

27-May 6880 531.09 14761

21-26 May Holiday

20-May 6600 Bid 506.4 Bid 14785

6725 Off 514.85 Off 19-May 6725 513.69 14823 18-May 6725 511.80 14885 15-May 6600 497.69 14909 14-May 6478 488.43 14946 13-May 6530 493.64 14887 12-May 6540 491.64 14978 11-May 6679 502.17 14936 08-May 6600 494.74 15009 06-May 6630 493.29 15127

05-May 6725 Bid 505.21 Bid 15104

6800 Off 500.25 Off 04-May 6880 511.45 15073 01-May Holiday 30-Apr 7055 520.46 15157 555.60 300 400 500 600 700 800 900 Units: USD/MT Un its : CN Y/MT )

Palm Oil Rotterdam CIF CPO CIF-Rotterdam

Sector Updates:

Indonesia

Indonesia sets export levy on crude palm oil at $55 per tonne.Indonesia will charge a blanket export

levy of $55 per tonne on crude palm oil (CPO) shipments from June 1, a Finance Ministry regulation showed on Saturday, as the government seeks to raise funds for a domestic biodiesel programme. (Source:Reuters)

China

Fonterra says China dairy imports jump in March as lockdowns ease. New Zealand's Fonterra said on Friday China's global dairy import volumes climbed 10.1% in March after two consecutive months of declines, as the world's second-largest economy reopens after coronavirus-induced lockdowns. The jump in China dairy imports, however, may not be sustained as inventory levels are rebuilt. New Zealand also reported a 13.6% drop in dairy exports, dragged down by lower demand from Thailand, China and Saudi Arabia, according to global dairy data from Fonterra. (Source:Reuters)

Ukraine

Ukraine imports soybeans for the first time in years.Ukraine, a major exporter of soybeans, has

agreed to its first soybeans imports in many years and industry sources said on Thursday such deals could be repeated in future if domestic output continues to shrink. The 20,000 tonnes of Brazilian soy is to arrive on three vessels, two of which have already departed, at Ukraine's Sea of Azov's Berdyansk port. (Source:Reuters)

US

U.S. crude, diesel stocks pile up on lackluster fuel demand.U.S. crude oil and distillate inventories

rose sharply last week, the Energy Information Administration said on Thursday, while fuel demand remained slack even as various states eased movement restrictions that were put in place to stem the coronavirus pandemic. Crude inventories posted a gain of 7.9 million barrels in the week to May 22, largely due to imports. That brought overall U.S. stocks, excluding strategic reserves, to 534.4 million barrels, about 1 million barrels away from an all-time record. (Source:Reuters)

Biodiesel Fuel Basics

Biodiesel Production

Biodiesel is produced from vegetable oils, yellow grease, used cooking oils, or animal fats. The fuel is produced by transesterification—a process that converts fats and oils into biodiesel and glycerin (a coproduct). Approximately 100 pounds of oil or fat are reacted with 10 pounds of a short-chain alcohol (usually methanol) in the presence of a catalyst (usually sodium hydroxide [NaOH] or potassium hydroxide [KOH]) to form 100 pounds of biodiesel and 10 pounds of glycerin (or glycerol). Glycerin, a co-product, is a sugar commonly used in the manufacture of pharmaceuticals and cosmetics.

Raw or refined plant oil, or recycled greases that have not been processed into biodiesel, are not biodiesel and should not be used as vehicle fuel. Fats and oils (triglycerides) are much more viscous than biodiesel, and low-level vegetable oil blends can cause long-term engine deposits, ring sticking, lube-oil gelling, and other maintenance problems that can reduce engine life.

Research is being conducted on developing algae as a potential biodiesel feedstock. It is expected to produce high yields from a smaller area of land than vegetable oils.

Renewable diesel, also called “green diesel,” is distinct from biodiesel and is produced through a very different process.

Disclaimers:

The information and/or materials have been procured from sources which are believed to be reliable and accurate and are provided “as is” without warranty of any kind regarding reliability and accuracy or fitness for a purpose, either express or implied. They are provided solely for general information only and are not intended and should not be taken as any offer or solicitation to do any investment or trade.

The Palm Oil Association of Singapore (“POAS”) is not an entity governed by nor licensed under the Financial Advisors Act and no assessment has been made by the POAS on the suitability of the materials for you and the materials provided herein do not take into account suitability of the investments for you, nor does it constitute investment or trading advice. All trades and/or investments are subject to investment and trading risks including possible margin calls. The value of the product and the income from them may fall as well as rise. Ideally, you should and you may wish to seek advice from an independent financial adviser before making a commitment to purchase or invest in the investment product(s) mentioned either in this e-mail. In the event that you choose not to do so, you are then choosing to make your own decision on whether any of the said investment product(s) are suitable for you. The POAS shall not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials contained in this email.

Palm Oil Association of Singapore

Website: https://poaos.org

12 Marina Blvd, #22-04 MBFC Tower 3, Singapore 018982 Phone: +65 6914 2859