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.
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