Moody’s maintains negative outlook on IOI while IOI’s Q2 2016 earnings negative Moody’s announced that it is reverting IOI Corporation’s (IOI:MK) credit outlook as “negative” following the lifting of its suspension by the Roundtable of Sustainable Palm Oil (RSPO). Moody’s issuer rating of IOI is still Baa2, the second lowest investment grade granted by Moody’s. …
IOI Corporation’s (IOI:MK) shares railed 5% to 4.45 ringgit from 4.23 ringgit on the news that the Roundtable on Sustainable Palm Oil (RSPO) informed IOI that it will lift its suspension of IOI effective August 8, 2016. Volume of shares traded was 3x higher than the 12-month average of 5.26 million shares traded daily after …
Global and SE Asian Supply Update Globally, according to the U.S. Department of Agriculture, global palm oil production over the next two years is forecast to grow by 6 percent, increasing to 65.39 million metric tons (2016 to 2017) from 61.64 million metric tons (2014 to 2015). Regionally, USDA has now forecasted that Indonesia’s palm …
Indonesian Five-Year Moratorium As Chain Reaction Research reported previously, in April Indonesia’s President Joko Widodo proposed a five-year moratorium on new palm oil concessions. On July 15th, further information was released by Pak Darmin Nasution, Indonesian Coordinating Minister for Economic Affairs, who was previously the Governor of Bank of Indonesia from 2010 to 2013. The moratorium …
Cargill Suspends IOI According to the Financial Times, the leading global commodity trader Cargill has suspended ties with IOI Corporation (IOI:MK). The move comes after IOI’s suspension by the RSPO, and Cargill’s request that the company respond by meeting specific deadlines or lose the trading giant’s business. Specifically, Cargill had requested that IOI:
Buyers paying more for CSPO and IPOP disbanded As covered in previous Chain Reaction Research analysis, IOI Corporation’s (IOI:MK) temporary suspension from the Roundtable on Sustainable Palm Oil (RSPO) has many of their buyers looking elsewhere to lock-in forward purchases of certified sustainable palm oil (CSPO). The market has now shown that as these forward …
In 2015, according to the Government of Indonesia, 2.6 million hectares of Indonesia’s forests burned out of control as a result of dryer weather and deliberately set fires. This had negative impacts on regional health, education, and livelihoods of millions of people in SE Asia. The daily emissions from the Indonesian fires in October 2015 …
Indofoods’ parent Salim Group has reportedly acquired four palm oil concessions in West Papua. These four plantations are currently clearing forests and setting up nurseries on 117,000 hectares. The four plantations are: PT Rimbun Sawit Papua, PT Subur Karunia Raya, PT Bintuni Agro Prima Perkasa and PT Menara Wasior. The four contested plantations have the …
Indonesian Government Aspirations Moving to Actions Indonesian President Joko Widodo took office at the end of 2014 with a mandate to improve the country’s governance and increase its economic growth via infrastructure spending. In the past weeks, his administration took action on both, addressing governance issues in forest concessions and pursuing development of a sovereign …
In response to IOI Corporation’s (IOI:MK) decision to sue the Roundtable on Sustainable Palm Oil (RSPO) last week, several major global corporations, such as Unilever, Mars, Nestle, Kelloggs, and Ferrero have stopped buying from the company. IOI was temporarily suspended from RSPO after its failure to resolve issues related to deforestation and land grabbing in …