In a Nov 5 note, Hoe says crude palm oil (CPO) prices remain buoyant at current levels, mainly due to the still-disappointing production numbers from Malaysia, which is down 9% y-o-y as at September.
Although fundamentals still point to moderating prices in 2022, the risk of La Niña in 4Q21 and 1Q22 could keep prices higher for longer, says RHB Group Research analyst Hoe Lee Leng.
She maintains “underweight” on the plantation sector, with a “neutral” recommendation on three out of four of the Singapore-listed stocks covered.
