Lack of catalysts forecast for palm oil sector

PETALING JAYA: Hong Leong Investment Bank Bhd Research (HLIB Research) has maintained its “neutral” call on the plantation sector as the absence of a notable demand catalysts has indicated that current high palm oil price will not be sustainable in the long term.

In a report, HLIB Research said palm oil’s narrower price discount against soy oil is due to impending seasonal output recovery and the lack of demand, among other factors.