CPO Prices Fast Approaching RM3,000


Investment Bank expects the plantation sector to become more positive

in the coming months with crude palm oil prices fast approaching the

RM3,000 per tonne mark.

CPO has rallied 15 per cent in the past six months amid optimism

that demand will increase in Asia and on concerns excess rain will

disrupt output in Malaysia, said MIMB Investment Bank in a research note


“We like small- to mid-side plantation counters that trade at a discount compared with the industry average,” it said.

As at September, CPO was traded at an average of RM2,719 due to a 2.68 per cent drop in production month-on-month.

Yesterday, CPO prices for October closed at RM2,916 per tonne.

MIMB also said Malaysia’s palm oil exports are expected to reach

RM65.2 billion this year from RM49.5 billion last year, with increased

demand being viewed as a cheaper alternative to cooking oil compared

with soy oil.

To date, the discount between CPO and soy oil has widened in

comparison to around US$180 per tonne from US$157 per tonne last month.

— Bernama

Source : Business Times

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