M.P. Evans Palm-Oil Price Holds Up Well At $800 Per Ton

11th Jun 2010 12:09

LONDON (Dow Jones)--M.P. Evans Group PLC (MPE.LN), an oil palm and rubber company, announced Friday that the palm-oil price has held up well at around $800 per ton and this is an historically-high level. MAIN FACTS: -Prices have remained at these levels despite improved soybean crops in South America and despite the recent weakening of mineral-oil prices to around $72 per barrel. -Lower production growth in the second biggest producer, Malaysia, has contributed to this strength. -The crops of oil-palm fresh fruit bunches or f.f.b. up to the end of May 2010, from the majority-owned Sumatran estates amounted to 60,200 tons (2009: 57,800 tons). -The crops from the associated companies (including Malaysia) for this period were 132,400 tons (2009: 135,300 tons). -The Pangkatan mill has achieved an improved extraction rate of around 23% compared with 22.3% for the same period in 2009. -The f.f.b. crop from the Bangka project amounted to 6,600 tons for the first five months of 2010. The crop for the same period last year was 3,700 tons. -Both Woodlands and all the NAPCo properties continue to enjoy an excellent season following the beneficial rainfall earlier in the year. -Pasture is therefore plentiful and, as a consequence, the number of cattle on Woodlands stands at a record 8,000 head. -It is anticipated that the NAPCo herd will now be able to be rebuilt from 160,000 head to its "steady-state" capacity of 200,000 head more quickly than originally anticipated. -World cattle prices continue to be robust and the outlook appears positive for both the short and longer term. Woodlands has, for the time being, been taken off the market. -Some 1,000 hectares in total have been planted on the new projects so far in 2010. -Negotiations with smallholders to agree compensation arrangements continue to be time consuming. It is hoped that planting will accelerate in the remainder of the year. -As at the end of May, some 13,800 hectares in total had been planted of which just under 10,000 hectares belong to the Group with the remainder allocated to the associated cooperative schemes. -There have been no recent sales of land in Malaysia. -However, some significant land sales by the Group's associated company, Bertam Properties, are expected to be completed later this year. -A dividend was recently paid by Bertam Properties of which the Group's share amounted to some $1.8 million. -Shares at 1105 GMT down 3.5 pence, or 1.08%, at 320 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; [email protected] (END) Dow Jones Newswires June 11, 2010 07:09 ET (11:09 GMT)