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Company Reports

07 February 2025

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Palm Oil Weekly (31 January – 6 February 2025): Avg. CPO MYR 4,477 (-0.7% WoW)

  • In the last 5D, CPO prices slipped -0.7% WoW, averaging MYR 4,477/MT. Despite earlier decline, prices rebounded on 5-Feb, driven by weather-related supply concerns.
  • Indonesia and Malaysia’s meteorology agencies issued alerts for heavy rainfall across key palm-producing regions, potentially impacting CPO production. Indonesia’s output is projected to decline approximately 9-15% MoM in January, while Malaysia’s production likely fell 10% to 11-month low, according to Bloomberg survey published this week.
  • On the demand side, market participants expect higher demand from Pakistan and Middle Eastern countries ahead of Ramadan, which begins in March. The combination of recovering demand and tight supply may drive prices up.
  • Given these conditions, our 2025 CPO price forecast of MYR 4,500/MT (YTD: MYR 4,500/MT, +7.2% YoY) may have upside potential, further supported by B40 biodiesel program and CPO’s defensive nature. Stock-wise, NSSS (TP: IDR 350/sh) and TAPG (TP: IDR 1,050/sh) are our top picks, given their young plantation profiles (<10 years), which allow for higher crop and extraction yields

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CPO - 31 January - 6 February 2025

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CPO - 31 January - 6 February 2025

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