Hong Leong Investment Bank: Malaysia's palm oil inventories expected to remain stable in May, prices to decline after peaking in Q2
- Hong Leong Investment Bank analyst Chye Wen Fei stated that Malaysia's palm oil inventory levels in May are expected to remain stable, as a potential rebound in exports may be offset by continued seasonally high production.
- She expects crude palm oil prices to remain at a high level of 4,500 to 4,600 ringgit per ton in the second quarter, before declining from the third quarter onwards.
- Chye maintains an "overweight" rating on Malaysia's plantation sector, supported by the strong recent performance of crude palm oil prices driven by high crude oil prices.
- However, she warns that the current upward cycle could peak earlier than expected, and should the supply of other vegetable oils increase and become more competitive, this commodity will face mid-term risks.
- Hong Leong Investment Bank prefers pure upstream planters who have already locked in fertilizer costs for this year, naming Johor Plantations and SD Guthrie as top picks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Susquehanna raises pre-earnings price targets for chip stocks: AMD (AMD.US), Qualcomm (QCOM.US), etc. receive upward revisions
Susquehanna has adjusted the target prices for chip stocks such as AMD, Intel, and Qualcomm.
Wedbush: Hard drive supply falls short of demand, Seagate (STX.US) and Western Digital (WDC.US) earnings reports may bring surprises
Wedbush reiterated its "outperform" ratings for Seagate and Western Digital, setting target prices at $1,000 and $650, respectively.
JPMorgan maintains Underweight rating on Nike (NKE.US): Deep in adjustment pains, performance pressures may persist until fiscal year 2028
Recently, JPMorgan released a U.S. equity research report on Nike. The research team participated in a face-to-face meeting with Nike's new CFO, Denton, updated profit assumptions based on management statements, and maintained an “underweight” investment rating on Nike.
Crypto prices
More
