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18 October 2024

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Palm Oil Weekly (18 October 2024): CPO MYR 4,342 (+1.7% WoW)

  • In 10-17 October 2024, CPO prices rose +1.7% WoW, averaging MYR 4,351/MT, mainly driven by stronger demand from India, the world’s largest CPO importer.
  • During the first half of October, India’s CPO imports from Malaysia surged nearly 63% from a month before (MoM). Historically, India’s cooking oil usage tends to rise between September - November due to several religious festivals, including Diwali. The trend appears to be repeating itself this year, as India's CPO inventory has been on downward trajectory since July.
  • Malaysia decided to maintain its palm oil export tax at 8%. The rate has been unchanged since January 2021, following government exemption in Jul-Dec 2020.
  • At this stage, we retain our FY24 average forecast at MYR 4,100/MT (YTD: MYR 4,011/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 - 18 October 2024

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CPO - 18 October 2024

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