In a June 23 note, Leow and Yow are maintaining “market weight” on Singapore's plantation sector, and “buy” on Wilmar International with a target price of $5.50.
Prices of crude palm oil (CPO) have corrected 28% since Indonesia announced the lifting of the export ban, offering the plantation sector some relief from further price deterioration, says UOB Kay Hian Research.
Indonesia’s palm oil industry has “clearly not benefited” from the high CPO prices over the last six months, add analysts Leow Huey Chuen and Jacquelyn Yow.
