RHB believes that the CPO price decline is slightly overdone, having fallen by 44% in seven weeks — more than the drop in soybean, crude oil and wheat prices at 31%, 17% and 16% respectively.
The price of crude palm oil (CPO) has fallen drastically on the unwinding impact of Indonesia’s export ban as well as fears of recession which has brought down all commodity prices.
To this end, RHB Group Research analyst Hoe Lee Leng has tweaked her CPO price assumptions down for 2022 to RM5,100 per tonne from RM5,300 per tonne previously.
