Some tips and tricks to buying plantation counters...

1. FCPO pricing
Look at the FCPO prices currently its hovering at about RM 3,100 per tonne which is a plantation owners wet dream.
Price has risen comparing the pass 2 weeks figures from around Rm 2,900 per tonne to Rm 3,100 , momentum is expected to run out but for the time being the wet dream continues.

2. Plantation Yield Factor and Profitability...
a) Some plantations have massive land banks i.e. Synergy Drive , unfortunately for them for a Palm tree to reach maximum profitability it will take from nursery to planting to prime at least 10 years before a Palm see its full potential.

b) Caveat - Palms which have reached their maxiumum yield and is on the verge of replanting the cost will be high, which will affect the bottom line.

c) New and upcoming plantations, high cost, unplanted palms, uncertain-profits and debt riddle in the long run?

d) Existing plantation is more to yield factor.

3. Weather - Flood in Johor (long term effect?)

4. World oil prices - signal ? Higher oil prices means higher demand for CPO

Take your time to digest some or all of this information and you will see some potential Plantation stocks emerge, which have been over-looked at the same time undervalued by the market.

recently received news from the plantation that there is over-supply of palm oil, mills have excess capacity and refusing alot of FFB from the field.

Forcing local producers to bury their crop, instead of letting it rot in the open.

Apprently, this yr end crops r at full yield meaning the harvest is good supply is high but no takers.

Palm oil anyone?