As a result, harvesting and production will be hampered in Indonesia and Malaysia, two of the world’s largest producers of this cash crop.
Ada Lim of OCBC Investment Research has maintained her "hold" call on Bumitama Agri (SGX:P8Z
) but with a higher fair value of 91.5 cents, up from 81.5 cents, given how the Indonesian palm oil company is seen to receive a boost from higher prices
In her Dec 5 note, Lim points out that benchmark crude palm oil prices in Malaysia has seen a recent jump no thanks to heavy rains and flash floods in parts of Southeast Asia.
