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Company Reports

03 January 2025

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Palm Oil Weekly (27 December 2024 – 2 January 2025): Avg. CPO MYR 4,829 (+0.6% WoW)

Recent Catalysts Driving the Price

  • In the last five trading days, CPO prices rose +0.6% WoW, averaging MYR 4,829/MT, mainly due to delays in the implementation of Indonesia’s B40 biofuel program.
  • The Indonesian government previously committed to roll out the B40 policy on 1 January 2025. However, at the time of this writing, the final regulations are yet to be completed, with authorities aiming to soon finalize.
  • Despite earlier gains, CPO prices have declined since 30 December, dropping to MYR 4,484/MT on 2 January 2025, amid weaker demand. Malaysian exports decreased approximately 8% MoM in December, with flows to India — the biggest buyer — down around 18% post Diwali, according to cargo surveyor Intertek Testing Services.
  • In FY24, avg. CPO price reached MYR 4,199/MT (SSI: MYR 4,190/MT). For FY25, we set our forecast at MYR 4,500/MT (YTD: MYR 4,484/MT), up 7.2% YoY, on B40 program upcoming implementation and the edible oil’s defensive nature. Stock-wise, NSSS (TP: IDR 350/sh) and TAPG (TP: IDR 1,050/sh) are our top picks, due to young plantation profiles (<10 years), reflecting higher crop and extraction yields.

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CPO - 27 December 2024 - 2 January 2025

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CPO - 27 December 2024 - 2 January 2025

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