Singapore Stock Market News

Plantations - Rising competition from oilseeds

StockFanatic
Publish date: Mon, 13 Jan 2014, 10:59 AM
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Malaysia's palm oil stocks rose 0.3% mom to 1.99m tonnes as at end-Dec 13. The stock level was 1.5% above consensus, but 2% below our projection. The lower stocks against our forecast were due mainly to lower-than-expected production as a result of flooding in parts of Malaysia. We are neutral on the inventory data and project the CPO price to trade in the range of RM2,400 to RM2,700 in the near term.

We remain Neutral, with First Resources, Wilmar, Ta Ann Holdings, Astra Agro and London Sumatra as our top picks.
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