CHINA IMPORTER MARGINS (Dalian Olein - (BMD CPO +40)) Spread - PowerPoint PPT Presentation

CHINA IMPORTER MARGINS (Dalian Olein - (BMD CPO +40)) Spread (adjusted for fobbing costs, tax and freight) 100 80 60 40 20 - (20) (40) (60) (80) A = Dalian Olein adjusted = (Price - fobbing) / (1+import tax) / (1+VAT) / Fwd FX (USDCNY) (100) B = BMD CPO adjusted = (Price) / Fwd FX (USDMYR) + 40 (OLN premium to CPO) C = Freight (US35/mt) (120)

(Dalian Olein - BMD Olein) Spread China CPI inflation (adjusted for fobbing costs, tax and freight) 100 7.0% 80 6.0% 60 40 5.0% 20 4.0% - (20) 3.0% (40) 2.0% (60) (80) 1.0% (100) (120) 0.0%

CPO West Malaysia (Cash - Future) CPO Price (MYR/mt) 60 3,600 40 3,500 20 3,400 - 3,300 (20) 3,200 (40) 3,100 (60) 3,000 (80) DIFFERENCE (MPOB-BMD) 2,900 BMD VWAP -1ST (100) MPOB VWAP-1ST 2,800 (120) 01-Nov-11 01-Dec-11 01-Jan-12 01-Feb-12 01-Mar-12 01-Apr-12 01-May-12