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Between 15–21 November 2024, CPO price dropped -2.2% WoW, averaging MYR 4,986/MT. This marked its first weekly decline after five consecutive resilient weeks, driven by weaker soybean oil price, which appeared more attractive ahead of China’s forthcoming winter season.
Soybean oil, second-most consumed vegetable oil at 27.9% (CPO: 35.8%), dropped -4.4% WoW, averaging USD 44.5/lb, attributed to abundant South American soy harvest potential with Brazil's upcoming rainy season expected to enhance production.
Moreover, unfavorable biofuel demand outlook under the Trump administration contributed to the soybean oil downtrend. Small refinery exemptions, prevalent in previous Trump policies, removed 20% of US Renewable Volume Obligations (RVOs).
The potential for higher output in December prompts us to retain our FY24 average forecast at MYR 4,100/MT (YTD: MYR 4,060/MT) with NSSS (TP IDR 265/sh) and TAPG (TP IDR 800/sh) as our top picks, supported by their relatively young plantation assets (less than 10 years old), which should translate to higher crop and extraction yields.
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
