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Company Reports

04 October 2024

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Palm Oil Weekly (4 October 2024): CPO MYR 4,232 (-0.1% WoW)

  • In 26 September - 3 October 2024, CPO prices stayed flat (-0.1% WoW), averaging MYR 4,163/MT. Expectations of supply disruptions stemming from tensions in the Middle East, coupled with recovery in demand from EU have kept prices above YTD average of MYR 3,993/MT.
  • CPO prices jumped 5% on 2 October to MYR 4,246/MT, driven by concerns over potential disruptions to shipping routes following Israel's retaliation plan against recent attacks from Iran, which could impact trade flows to and from Asia.
  • In addition, demand from EU is expected to recover after the European Commission decided to postpone the implementation of the deforestation law, responding to pressures from global partners and industry.
  • We retain our FY24 average forecast at MYR 4,100/MT (YTD: MYR 3,993/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.

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CPO - 4 October 2024

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CPO - 4 October 2024

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