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Company Reports

14 February 2025

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Palm Oil Weekly (7 – 13 February 2025): Avg. CPO MYR 4,671 (+4.3% WoW)

  • In the last four trading days, CPO prices jumped +4.3% WoW, averaging MYR 4,671/MT and peaking at MYR 4,726/MT on 12 Feb - its highest level in 2 months, as heavy rainfall in Malaysia constrained supply. However, prices fell -1.3% on 13 Feb amid speculation about potential Russia-Ukraine peace deal.
  • Biofuel demand may weaken as oil prices decline, driven by potential lifting of sanctions against Russia (11% of global oil production), easing supply chain disruptions. In addition, fertilizer prices are expected to normalize as Russia (14% of global urea supply) resumes shipments, reducing vegetable oil production costs. Before the conflict, Ukraine accounted for 50% of global sunflower oil supply, a key CPO substitute. A peace deal could lower global sunflower oil prices, shifting consumers away from palm oil.
  • Given these factors, our 2025 CPO price forecast of MYR 4,500/MT (YTD: MYR 4,500/MT, +7.2% YoY) faces downside risk. However, supply constraints from adverse weather, B40 program, and CPO’s defensive nature may provide support. Stock-wise, NSSS (TP: IDR 350/sh) and TAPG (TP: IDR 1,050/sh) remain our top picks, given their young plantation profiles (<10 years), which allow for higher crop and extraction yields.

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CPO - 7 - 13 February 2025

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CPO - 7 - 13 February 2025

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