Latest news with #330
Hans India
5 days ago
- Business
- Hans India
Farmers get Rs 49,330-cr fertiliser subsidy till July 21
New Delhi: The Centre has provided fertilisers subsidy of Rs49,330 crore till July 21 of this fiscal to ensure farmers get key nutrients at a reasonable a written reply to Lok Sabha on Friday, Minister of State of Chemicals and FertilisersAnupriya Patel informed that the total fertilizer subsidy provided by the government stood at Rs49,329.88 crore till July 21 of 2025-26 fiscal. Out of this, Rs30,940.82 crore subsidy was towards domestic urea, while Rs4,006.70 crore for imported urea. In 2022-23, the Centre's fertiliser subsidy stood at Rs2,54,798.88 crore. The subsidy declined to Rs1,95,420.51 crore in 2023-24 and Rs1,77,129.50 crore in 2024-25. 'Under 'DBT in Fertilizers' system, 100 per cent subsidy on various fertilizer grades is released to the fertilizer companies, on actual sales to the beneficiaries based on Aadhar authentication through POS devices installed at each retail shop,' Patel said. All farmers (including small, medium and large farmers) are being supplied fertilisers at subsidized rates, she added.
Focus Malaysia
6 days ago
- Business
- Focus Malaysia
CPO prices to stay resilient amid inventory stabilisation, PIB maintains neutral outlook
PUBLIC Investment Bank (PIB) expect crude palm oil (CPO) prices in the second half of 2025 (2H25) to remain within the RM4,000–4,300/mt range, supported by a stabilising inventory trend after surpassing the 2 mil mt level. At the point of writing, CPO futures hit RM4,330/mt. Export momentum, particularly to India, is expected to improve, driven by the wide palm oil–soybean oil price differential and low inventory in the country. 'In the absence of new catalysts, we maintain a Neutral outlook on the sector, with a full-year CPO price forecast of RM4,200/mt,' said PIB. Indonesia consumed approximately 7.42 mil kilolitres of biodiesel as of 16 July, representing 47.5% of its full-year target of 15.62 mil kilolitres. This is projected to boost domestic palm oil usage by 2 mil mt, tightening export availability. The BPDP Agency's estimated collection of 30tln rupiah in export levies is sufficient to fund the B40 programme. The potential rollout of a B50 mandate could serve as a key catalyst in 2026, potentially increasing domestic consumption by an additional 3 mil mt and mitigating the negative impact of higher US tariffs. Forest and land fires in Indonesia's Sumatra region have surged, with 1,292 hot spots detected by the Meteorology, Climatology, and Geophysics Agency (BMKG), a 14-fold increase in 10 days. Riau province is the worst hit, with 582 hot spots. While the extent of plantation land affected remains unknown, prolonged dry weather could negatively impact fresh fruit bunch (FFB) output over the next 1–2 years. Palm olein continues to trade at a premium of 454 yuan/mt to soybean oil on the Dalian Commodity Exchange, despite palm oil's current discount of USD222/mt to Argentine soybean oil. This pricing misalignment discourages Chinese buyers from switching to palm oil, prompting increased soybean crushing. Based on our calculations, palm olein prices would need to drop by at least USD63/mt to reach parity. Historically, palm oil has traded at a USD91–184/mt discount to soybean oil over the past decade. Brazil, Argentina, and the US collectively account for 80% of global soybean production. Output is expected to rise 6% YoY to 421m mt in 2024/25, with Brazil contributing a record 169m mt and expected to reach 175m mt in 2025/26. Global production is forecasted to grow another 1.3% to a record 427m mt in 2025/26. The US has imposed a 25% tariff on Malaysian palm oil products, compared to 19% for Indonesian exports. While this makes Malaysian products less competitive, the US accounted for less than 3% of Malaysia's palm oil exports in 2024, limiting the impact. The US Environmental Protection Agency (EPA)'s proposal to cut the renewable identification number by 50% for fuels made from foreign feedstocks, as part of 2026-2027 renewable volume obligations could artificially drive up the soybean oil and biofuel prices in the country. Soybean oil price currently trade at USD1,223/mt on Chicago Board of Trade compared to Brazil's USD1,167/mt and Argentina's USD1,112/mt. According to the GlobalData Agri report, there is sufficient domestic feedstock to meet the EPA's projected production volumes of 4.3 bil gallons in 2026 and 4.6bn gallons in 2027 while the US biomass-based diesel demand is expected to reach 7 bil gallons by 2027 and grow to 9bn gallons by 2030. Meeting that demand, however, will require continued access to global feedstock markets. EPA's proposal to cut the renewable identification number value by half fo fuels made with imported feedstocks would limit overall biomass-based diesel market growth, threaten future investments and limit consumer access to American-made fuels. Various study estimate that the policy shift would introduce significant cost pressures across the renewable fuel supply chain. By reducing the imported feedstocks, it would effectively create a USD250-400/mt premium for domestic feedstocks. These price pressures are expected to draw more domestic feedstocks away from food and other non-biofuel uses. Despite higher minimum wages and fertiliser prices in 1H25, we anticipate lower production costs in 2H, aided by increased FFB yields and palm kernel credits. The mandatory 2% EPF contribution for foreign workers effective October 2025 is expected to trim plantation earnings by less than 1%. Malaysian oleochemical producers face mounting pressure from higher input costs as palm kernel oil is now subject to a 5% sales and service tax under the expanded SST regime. This applies to refined, bleached, and deodorised (RBD) palm kernel oil and palm kernel shell. Price volatility in palm kernel oil further complicates cost hedging, while the stronger Ringgit negatively affects revenue. We expect CPO prices to trade in the range of RM4,000-4,300/mt level for the 2H, driven by aggressive restocking activities ahead of the Diwali festival celebration amid current low inventory levels. Year-to-date (YTD), CPO price averaged at RM4,350/mt while CPO futures currently traded at RM4,330/mt. We maintain our 2025 CPO price forecast at RM4,200/mt. —July 25, 2025 Main image: Green Queen
Malaysian Reserve
6 days ago
- Business
- Malaysian Reserve
Public Investment Bank neutral on plantation sector, CPO prices expected to remain stable in 2H25
PUBLIC Investment Bank Bhd has maintained a neutral outlook on the plantation sector, with crude palm oil (CPO) prices projected to remain stable in the second half of 2025 (2H25), trading within the RM4,000 to RM4,300 per tonne range. The research house said in a note today that the forecast is supported by stabilised inventory after surpassing the 2 million tonne level, alongside improved export momentum driven by price competitiveness against soybean oil. 'At the point of writing, CPO futures are trading at RM4,330 per tonne. Export momentum, particularly to India, is expected to improve, driven by the wide palm oil-soybean oil price differential and low inventory in the country,' it said. The investment bank said the full-year CPO price forecast has been maintained at RM4,200 per tonne. 'Our top picks are Sarawak Plantation and Ta Ann, both offering attractive dividend yields of five to six per cent,' it said. Meanwhile, lower production costs are anticipated in 2H 2025, despite earlier pressure from higher minimum wages and fertiliser costs. 'Despite higher minimum wages and fertiliser prices in 1H 2025, we anticipate lower production costs in 2H 2025, aided by increased fresh fruit bunch yields and palm kernel credits,' it said. It added that the implementation of the mandatory two per cent Employees Provident Fund contribution for foreign workers beginning October 2025 is expected to trim plantation labour costs by less than one per cent. On the policy front, the bank noted that Indonesia's B40 biodiesel programme remains on track, which may support long-term demand for palm oil as a biofuel feedstock. It also flagged environmental risks, noting a significant rise in fire hotspots in Sumatra and Kalimantan, which could lead to transboundary haze concerns if dry weather persists. It also said subdued demand and price volatility continue to pressure Malaysia's oleochemical segment, especially for players reliant on palm kernel oil and export markets. 'Price volatility in palm kernel oil further complicates cost hedging, while the strengthening the ringgit negatively affects revenue. Affected players include SD Guthrie, KLK, and IOI Corp,' it said. The research house added that the imposition of a 25 per cent tariff by the United States (US) on Malaysian palm oil products is unlikely to have a material impact. 'While this makes Malaysian products less competitive, the US accounts for less than three per cent of Malaysia's palm oil exports in 2024, limiting the impact,' it said. In contrast, the US government's proposed expansion of biofuel mandates could drive up soybean oil prices, indirectly supporting the appeal of palm oil in global markets, it said. — BERNAMA
Barnama
7 days ago
- Business
- Barnama
CPO Futures Extend Rally To End Higher, Tracking Soybean Oil's Uptrend
By Engku Shariful Azni Engku Ab Latif KUALA LUMPUR, July 24 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives continued its rally to close higher on Wednesday following the uptrend in soybean oil prices. Palm oil trader David Ng said weaker CPO production in Indonesia also lifted market sentiment today. 'We see CPO prices supported at RM4,200 (per tonne) and resistance at RM4,350,' he told Bernama. At the close, the spot-month August and October 2025 contracts gained RM15 each to RM4,259 and RM4,330 per tonne respectively, while the September 2025 and December 2025 contracts rose RM12 each to RM4,310 and RM4,329 per tonne respectively. The November 2025 contract improved RM14 to RM4,334 per tonne, and January 2026 climbed RM8 to RM4,321 per tonne. Trading volume eased to 75,735 lots from 75,900 lots on Wednesday, while open interest widened to 233,661 contracts from 231,569 previously. The physical CPO price for July South edged up RM10 to RM4,280 per tonne. -- BERNAMA
New Straits Times
23-07-2025
- Business
- New Straits Times
Palm rises on short-covering, firmer palm olein, Chicago soyoil
KUALA LUMPUR: Malaysian palm oil futures rose on Wednesday, extending gains from the previous session, as short-covering by traders and strength in Dalian palm olein and Chicago soyoil lent support. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained RM66, or 1.55 per cent, to RM4,330 (US$1,025.09) a metric ton at the midday break. Strength in Dalian palm olein and Chicago soyoil markets spilled over into crude palm oil futures during the session, a Kuala Lumpur-based trader said. "Dalian's rally was driven by both short-covering and technical buying." Benchmark crude palm oil futures hit a midday high of RM4,334, with short-covering likely emerging after prices broke above the RM4,300-level, the trader added. Dalian's most-active soyoil contract added 0.3 per cent, while its palm oil contract rose 1.59 per cent. Soyoil prices on the Chicago Board of Trade gained 0.79 per cent. Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market. Oil prices climbed in Asian trade after falling for three consecutive sessions as a US trade deal with Japan signalled progress on tariffs, though gains were capped by fading hopes for a breakthrough at an EU-China summit. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The ringgit, palm's currency of trade, strengthened 0.12 per cent against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies. European Union soybean imports for the 2025-26 season that began on July 1 reached 519,609 million metric tons by July 20, down 32 per cent year-on-year. Palm oil imports fell 53 per cent year-on-year to 93,234 million tons, according to data published by the European Commission. Palm oil may retest support at RM4,198 per metric ton, a break below could open the way toward RM4,150, Reuters technical analyst Wang Tao said.
