InfoSAWIT, KUALA LUMPUR – Plantation analysis predicted crude palm oil (CPO) would be stable at RM 3.800 to RM 4.000 per ton in 2024-2025. This could happen even though palm oil stock in Malaysia got increased up to 1,88 million tons in August 2024 – the highest level in the past semester. It happened for the increasing seasing production and the decreasing exports.

As InfoSAWIT quoted from The Star, Wednesday (18/9/2024), Hong Leong Investment Bank (HLIB) reported that palm oil stock could be increasing this month because of the continues plantation cycle. Besides, the exports could be decreasing because palm oil could not compete with seeds and other vegetable oils.

HLIB also mentioned, CPO discount price to soyoil got closer from US$ 161 per ton in July to be only US$ 24 per ton in August 2024. This would have something to do with the exports from Malaysia that kept decreasing to many countries, such as, China, India, Middle East, and European Union.

But, data from Intertek Services showed that palm oil exports got increased 9,2% in the first five days of September to the previous month. This might happen for the increasing delivery to Asia Oceania, China, European Union, India, and Middle East.

HLIB Research also maintained its CPO price projection at RM 4.000 per ton this year and RM 3.800 per ton in 2025 with the average price this whole year at RM 4.011 per ton. On the other hand, the research institution recommended IOI Corp Bhd as one main investment option with the price target at RM 4,22, and Hap Seng Plantations Holdings Bhd with the target at RM 2,21. (T2)