Plantation sector at ‘neutral’

Downtrend: CPO prices are likely to decline on higher supply, towards RM2,250 per tonne, over the the third quarter of 2016.

PETALING JAYA: Most research houses are maintaining a “neutral” call on the plantation sector, given the rising stocks and increasing production, but the average crude palm oil (CPO) price forecast for 2016 remains intact at RM2,400-RM2,500 per tonne.

Kenanga Investment Bank Bhd, in its third quarter (Q3) 2016 strategy report yesterday, said as peak production season came in, CPO prices were likely to decline on higher supply, towards RM2,250 per tonne over Q3 the third quarter.