Plantations: A Surprise Reversal for Inventory (Overweight)

Palm oil inventories in Malaysia posted a surprise build-up in April, driven by weaker exports, while production improved significantly as productivity normalised.

Meanwhile, Crude Palm Oil (CPO) futures eased to the current level of RM4,515/mt after rising as high as RM4,777/mt last month.

Plantations

“With no clear signs of easing tensions in the Middle East and El Niño intensifying, we expect the current strong CPO price momentum to persist into 2H. Maintain our Overweight call on the sector and reiterate our full-year CPO price forecast of RM4,400/mt. Our top picks are SD Guthrie and Ta Ann,” says analyst.

#businessnews

Staff Writer

Recent Posts

Vertiv Opens Johor Facility to Strengthen AI Infrastructure Supply Across Asia

Vertiv opened its Johor manufacturing facility to expand AI infrastructure production, strengthen regional supply chains,…

11 hours ago

Malaysia Manufacturing Returns to Growth as June PMI Rebounds Above 50

Malaysia's manufacturing sector returned to expansion in June as stronger orders and production lifted PMI…

12 hours ago

Southern Cable Secures RM403.6m TNB Extension, Strengthening FY27 Earnings Visibility

Southern Cable secured a RM403.6 million TNB contract extension, lifting its order book above RM1…

13 hours ago

FBM KLCI Extends Decline as Investors Await Key US Jobs Data

Malaysia's benchmark index fell for a third session as cautious sentiment ahead of US payrolls…

15 hours ago

Malaysia’s AI Semiconductor Supply Chain Gains Momentum as Sector Outlook Strengthens

Malaysia's technology sector is poised for sustained growth as AI-driven semiconductor demand, rising exports, and…

16 hours ago

US Job Growth Slows Sharply as June Payrolls Miss Forecasts

US job creation slowed significantly in June as payroll growth missed forecasts, while unemployment eased…

16 hours ago

This website uses cookies.