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11 October 2024

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Palm Oil Weekly (11 October 2024): CPO MYR 4,269 (+0.9% WoW)

  • In 3-10 October 2024, CPO prices rose +0.9% WoW, averaging MYR 4,324/MT, on expectations of supply disruptions on consumers shifting to biodiesel from tensions in the Middle East which led to oil having surged (Brent: +6.3% WoW; WTI: +6.9% WoW).
  • CPO, a key ingredient in biofuel, saw considerable increase in demand, pushing its price to 6-month high of MYR 4,389/MT. In addition, India, the world’s biggest CPO importer, is expected to increase purchases ahead of Diwali celebrations.
  • Palm oil inventories in Malaysia climbed to their highest level since January, as consumption in the world’s second-largest grower slumped. Stockpiles jumped 6.9% MoM to 2.01mn tons in September, potentially applying pressure on prices.
  • We retain our FY24 average forecast at MYR 4,100/MT (YTD: MYR 4,002/MT), with NSSS (TP IDR 265/sh) and TAPG (TP IDR 800/sh) as our top sector’s picks, supported by their relatively young plantation profiles (<10 years old), reflecting higher crop and extraction yields.

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CPO - 11 October 2024

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CPO - 11 October 2024

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