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Company Reports

13 September 2024

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Palm Oil Weekly (13 September 2024): CPO MYR 3,909 (-0.7% WoW)

  • Between 6-13 September 2024, CPO prices declined -0.7% WoW, averaging MYR 3,937/MT, driven by higher import tax from India and lower soybean prices.
  • On 14 September, India raised basic import tax on crude and refined edible oils from 5.5% to 27.5% to protect farmers suffering from lower oilseeds prices. In 2023, 19% of Indonesia's CPO exports were delivered to India, our second biggest overseas market.
  • Soybean oil prices fell -2% WoW as South America’s growing season approached with its premium flipping to a discount to CPO, trading c. USD 24/ton lower on 12-Sept. In addition, MYR gained 6.8% YTD against USD expectation of Fed rate cuts.
  • Given recent decline in soybean prices, we may have to cut our FY24 CPO price forecast of MYR 4,100/MT. Regarding our top picks, we continue to favor NSSS (TP IDR 265/sh) and TAPG (TP IDR 800/sh), supported by their relatively young plantation profiles (<10 years old), reflecting higher crop and extraction yields.

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CPO - 13 September 2024

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CPO - 13 September 2024

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