Tuesday, February 26, 2008

Money does grow on tree

Many people will agree that money does not grow on tree. But I can no longer agree with it. I believe that money does grow on tree.

Take for example, the crude palm oil (CPO) that was extracted from oil palm tree was selling at about RM700 per metric tonne (PMT) at the lowest point of the commodity market, yet the plantation is able to break-even or even make a little profit out of it.

As of yesterday, CPO is selling at RM3850 PMT and many believes that it would soon reach the RM4000 level. Surely you can say that the cost to produce CPO is increasing but then again, the maximum cost is about RM1000 to produce each metric tonne of CPO. So, a handsome profit of RM2500 and above is not very hard to achieve. Furthermore, seller are selling of at least 22MT each time so...

Who says that money does not grow on tree

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