Malaysian Palm Oil Stocks Likely to Stay Elevated in Coming Months

Dow Jones
Sep 11

0226 GMT - Malaysian palm oil stocks may remain elevated over the next few months as production enters its peak season, while uneven exports could cap price gains, TA Securities analyst Angeline Chin says in a note. However, a sharp correction is unlikely, with crude palm oil prices expected to stay above 4,000 ringgit a ton, she says. Stronger energy prices could support biodiesel demand, while Indonesia's proposed B60 biodiesal mandate in 2027 may absorb more palm oil and tighten exports, she reckons. El Nino also poses an upside risk to prices, although any significant impact on production could emerge only from 2Q 2027, she adds. TA Securities maintains an overweight rating on Malaysian plantation sector, rates SD Guthrie, Kuala Lumpur Kepong, IOI Corp. and United Malacca at buy.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10