iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
22,162 Blog Posts

Want to De-Couple?

Take a look at [[EWM]], which is an ETF representing Malaysia. I’ll have you know, Malaysia is the biggest producer and exporter of palm oil in the world.

The primary driver for palm oil these days is for energy needs. It is used as a biofuel and is deemed a “clean fuel” by all the greenies.

The biggest producer of palm oil is a company named Sime Darby, which represents more than 9% of EWM. See Sime Darby chart here.

Last year, Malaysia’s economy ripped higher at a 6.3% clip. They do not expect to slow much (5.6%), during 2008. The risk, of course, is slowing growth in the U.S., who is Malaysia’s biggest consumer of manufactured goods.

If you’re looking for a direct play on the burgeoning demand of palm oil, EWM is the way to go. Thus far, I have no position and have been waiting for a meaningful pullback to get in.

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22 comments

  1. Jason

    A chartist would say quite a bit of support at 12.

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  2. Butthead

    Heeee said “palm oil.”

    Uuuuhhhh huh huh!

    Huh huh heh hehheh huh huh huh huh!

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  3. calvino

    pbof has their own plantations in banana land – if you want to be cute investing. they will scrap the bio diesel plant if they are smart and just sell the goop to starvin Marvin.

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  4. Danny

    thanks for the heads up fly

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  5. Steve

    Agreed. Thanks.

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  6. whatmeworry

    Anyone know of an equity play on the depressed (prob not for long) price of sugar?

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  7. JakeGint

    WhatMe Newman —

    IPSU, commie… do you read the damn board badinage or what?

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  8. TraderCaddy

    Palm oil futures?

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  9. ottnott

    It is used as a biofuel and is deemed a “clean fuel” by all the greenies.

    The greenie statement isn’t true. The greenies have growning concern about palm oil expansion in Malaysia and Indonesia, because the expanding plantations are burning forests known for their biodiversity.

    And the recent sharp increases in palm oil prices have led to cancellation of some biofuel processing plants as well as restrictions on palm oil sales for biofuel to address the impact on the cost of a dietary staple.

    Personally, I’d stay the hell away from most or all biofuel plays. A lot of the small participants will be incompetants and crooks. The big players will be buffeted by the clash between food and fuel and environmental issues, which can result in sudden demand losses as governments react with changes in subsidies or export rules.

    The world really isn’t ready for the sudden increase in biofuel use, and most current biofuels offer only a modest drop in greenhouse gases at best. To suddenly shift food crops to fuel use isn’t such a good idea, the world is learning.

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  10. The Fly

    liar.

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  11. Woodshedder

    MBRK up 8%.

    I’ll stop talking about as I do not want to risk schadenfreuding myself or having one of Fly’s henchmen visit me next time I’m out drinking in Brooklyn.

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  12. TraderCaddy

    The Bad News: The Greenies wouldn’t allow it in USA because it’s high in saturated fat.
    The Good News: You could put popcorn kernels in your gas tank and by the time you arrive at your destination you would have a nice snack.

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  13. Woodshedder

    Palm Oil production has been requiring the elimination of thousand of acres of carbon consuming forest. When these forests are cut down, the carbon released more than outweighs any benefit from the use of Palm Oil.

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  14. ottnott

    Palm oil is what used to make cookies taste so good. Pepperidge Farms stopped using pals oil and coconut oil in Mint Milanos, and I stopped buying Mint Milanos.

    I got your lie right here, Fly.

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  15. WallStreetLurker

    Does anyone here know where to find a list, by country, of exports to the U.S. as a % of the exporting countries GDP ?

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  16. Pudfucker

    Lurker: OECD maintains alot of wonky stats like that.

    http://www.oecd.org/home/0,2987,en_2649_201185_1_1_1_1_1,00.html

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  17. TraderCaddy

    Better yet: How about stuffing the gas tank with a cut up chicken and then go around and have a traveling fried chicken business. People can stop you in traffic and you can sell them fried chicken at the next intersection.

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  18. WallStreetLurker

    Pud:
    Thanks

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  19. big Mike

    Anybody going to listen to DECK’s earnings conference at http://www.deckers.com?

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  20. TraderCaddy

    I probably won’t listen to the conference call. I will probably be watching reruns of Seinfeld or the golf tournament on the tube.

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  21. calvino

    Deck data halted – what the hell is tampon shoes up to?

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  22. calvino

    Fuuuuuuuuuuuuuuuuuuuck!!!!!!!!!!!!

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