The main takeaway from the Palm Oil Conference (POC) is the speakers’ upbeat take on the near-term prospects for CPO price. Most of the experts expect spot prices to head higher in the near term and peak in 2Q before retracing in 2H12. Given that plantation stocks tend to track CPO price, plantation stocks are set to outperform in the near term if CPO prices do rally in 2Q. We maintain our Trading Buy call on the sector given our short-term bullish view on CPO price. Our top picks are BW Plantations, Indo Agri and Sime.
The price of crude palm oil (CPO) may rise to US$1,250 (RM3,788) per tonne by June this year due to tightening of supply and stocks within the global edible oil market, said vegetable oil trader Dorab Mistry. Another speaker, Thomas Mielke, executive director of Oil World, also said Malaysia would see a lower growth in CPO production this year, with a maximum increment of 0.5m tonnes, compared with an increase of 1.8m tonnes last year. Mielke expects a record calendar year average of US$1,180 for CPO this year. (Financial Daily)
The price of crude palm oil (CPO) may rise to US$1,250 (RM3,788) per tonne by June this year due to tightening of supply and stocks within the global edible oil market, said vegetable oil trader Dorab Mistry. Another speaker, Thomas Mielke, executive director of Oil World, also said Malaysia would see a lower growth in CPO production this year, with a maximum increment of 0.5m tonnes, compared with an increase of 1.8m tonnes last year. Mielke expects a record calendar year average of US$1,180 for CPO this year. (Financial Daily)
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