Plantations ‘overweight’ as crude palm oil prices surge to 2-year high

SINGAPORE (Dec 8): UOB Kay Hian is keeping its “overweight” rating on Singapore-listed plantation companies on the back of higher crude palm oil (CPO) prices, which surged to a 2-year high of US$748 per tonne on Monday.

The increase in Dumai and Belawan CPO prices was “beyond our expectation,” says UOB’s Singapore Research Team in a Thursday report. “We were expecting CPO prices to hover in the range of US$680-720/tonne in 4Q16.”

The research house says this could have been due to a tight supply of palm oil, and CPO prices tracking soybean futures’ performance.

---

Related Stories

• Brokers’ Digest: CDL, PropNex, PLife REIT, KIT, SingPost, Grand Banks Yachts, Nio, Frencken, ST Engineering, UOB
• Prospects of better FY2025 earnings inspire new ideas for ThaiBev
• Lim & Tan Securities maintains ‘buy’ on Grand Banks Yachts; almost doubles TP to $1.05

---