Positive outlook for plantation sector


UOBKH Research is keeping its prediction that CPO prices will trend higher in 2H24 due to tighter supplies and steady palm oil demand from India and China.

PETALING JAYA: Analysts are maintaining their “neutral” stance on the plantation sector, with pockets of positivity based on a projected increase in crude palm oil (CPO) stockpile in the second half of 2024 (2H24).

In a note published yesterday, Hong Leong Investment Bank (HLIB) Research observed that the palm oil stockpile had remained on an uptrend for the second straight month in June, rising by 4.3% month-on-month (m-o-m) to 1.83 million tonnes, as the slump in exports more than offset lower production.

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