CPO Falls Amid Weak Commodities; Key MPOB Data Awaited

Crude palm oil futures on Malaysia’s derivatives exchange extended declines Wednesday as investors made bearish bets ahead of key production and stock data due at the end of the week.

Prices also fell due to broad-based weakness in commodity markets, market participants said. Benchmark August CPO on the Bursa Malaysia Derivatives ended 1.1% lower at MYR3,316 a metric ton, after tumbling to MYR3,313/ton, the lowest since May 18.

Cambodia approves rubber plantation—in national park by Jeremy Hance

The Cambodian Prime Minister, Hun Sen, has approved a 9,000 hectare (22,200 acre) rubber plantation in Virachey National Park despite its status as a protected area, reports the Phnom Penh Post. The park is also listed as an ASEAN Heritage Park.

Spanning 332,500 hectares in Ratanakkiri province, Virachey National Park, is Cambodia's largest.

The concession to clearcut the forest and establish a rubber plantation was awarded to Srun Sovannaphoum Investment Co Ltd.

Indonesia's forest conservation plan may not sufficiently reduce emissions

One third of Indonesia's greenhouse gas emissions from deforestation originate from areas not officially defined as "forest" suggesting that efforts to reduce emissions from deforestation and degradation (REDD+) may fail unless they account for carbon across the country's entire landscape, warns a new report published by the World Agroforestry Centre (CGIAR).

The policy brief finds that up to 600 million tons of Indonesia's carbon emissions "occur outside institutionally defined forests" and are therefore not accounted for under the current national REDD+ policy, which, if implemented, would enable Indonesia to win compensation from industrialized countries for protecting its carbon-dense forests and peatlands as a climate change mechanism.

xclusive: Record rise, despite recession, means 2C target almost out of reach

Economic recession has failed to curb rising emissions, undermining hope of keeping global warming to safe levels Photograph: Dave Reede/All Canada Photos/Corbis

Greenhouse gas emissions increased by a record amount last year, to the highest carbon output in history, putting hopes of holding global warming to safe levels all but out of reach, according to unpublished estimates from the International Energy Agency.

The shock rise means the goal of preventing a temperature rise of more than 2 degrees Celsius – which scientists say is the threshold for potentially “dangerous climate change” – is likely to be just “a nice Utopia”, according to Fatih Birol, chief economist of the IEA. It also shows the most serious global recession for 80 years has had only a minimal effect on emissions, contrary to some predictions.

Countries form European Palm Oil Council in attempt to counter criticism of industry’s environmental record

 Photograph: Sutanta Aditya/AFP/Getty Images

Malaysia and Indonesia, which together account for about 90% of the world’s palm oil production, have launched a joint PR offensive to defend the industry’s environmental record.

Late last week, ministers from the two countries agreed to finalise plans for a European Palm Oil Council (EPOC) by the end of this year, to defend the trade of palm oil to the European Union and counter the “anti-palm oil campaign”. The industry has been accused by environmental groups of destroying biodiversity and causing social conflicts, deforestation and climate change.