PlantationWILMAR INTERNATIONAL LIMITED F34.SI FIRST RESOURCES LIMITED EB5.SI INDOFOOD AGRI RESOURCES LTD 5JS.SI BUMITAMA AGRI LTD P8Z.SI GOLDEN AGRI-RESOURCES LTD E5H.SI Plantation Companies - Near-term strength
- Malaysian Feb 16 output of 1.043m MT was 7% lower than our forecast of 1.119m MT.
- But 15% m-o-m drop in exports kept end-Feb 16 inventory level of 2.169m MT within expectations.
- Output to recover in Mar 16; but so will exports; endMar 16 Malaysian palm oil stockpile may drop to 2.022m MT.
Plantation Sector WILMAR INTERNATIONAL LIMITED F34.SI FIRST RESOURCES LIMITED EB5.SI GOLDEN AGRI-RESOURCES LTD E5H.SI BUMITAMA AGRI LTD P8Z.SI Plantation - A Boost From El Nino And Biodiesel
- The plantation sector’s outlook is turning positive. CPO prices are expected to be supported by a stronger-than-expected El Nino and higher demand on Indonesia’s higher biodiesel blending mandate.
- We raise our ASP assumptions to RM2,500-2,600 for 2015-16. Among the three markets, we prefer Singapore-listed companies as FR and BAL have a young age profile and will benefit from Indonesia’s biodiesel policies.
- Maintain OVERWEIGHT.
Continue Reading »
:.
