Planters likely to gain from lower production cost

MaybankIB Research forecast the new year will likely be a good financially for local plantation companies as demand for CPO is expected to remain steady.

PETALING JAYA: Plantation companies are anticipated to benefit from lower production cost due to weaker fertiliser expenses and higher productivity in 2024 while crude palm oil (CPO) price remains high at about RM3,700 per tonnes for the year.

Maybank Investment Bank (MaybankIB) Research forecast the new year will likely be a good year financially for local plantation companies as demand for CPO is expected to remain steady while vegetable oil market fundamentals remain supportive with incremental demand or consumption above incremental supply.