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23 August 2024

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Palm Oil Weekly (23 August 2024): CPO MYR 3,976(+2.7% WoW)

  • Between 26-30 August 2024, CPO prices rose +2.7% WoW, averaging MYR 3,916/MT, driven by concerns over supplies from the world’s top CPO producers (Malaysia and Indonesia) and potential recovery in demand.
  • According to MPOB, Malaysia’s CPO output between 1-20 Aug rose only 4% (normally 15-16%) from the same period in the previous month (1-20 Jul). Additionally, Indonesia plans to revise its biofuel policy from B35 (35% palm oil) to B40 (40% palm oil) starting January 2025. These developments have raised concerns about possible decline in global CPO supply.
  • By region, India and China have recently ramped up their CPO purchases. Chinese importers have secured some cargoes for December delivery, while India has increased its CPO stockpile in preparation for several upcoming religious festivals.
  • We retain our FY24 average forecast at MYR 4,100/MT (YTD: MYR 3,988/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), which should translate to higher crop and extraction yields ahead.

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CPO - 23 August 2024

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CPO - 23 August 2024

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