In our view, crude palm oil (CPO) prices are undervalued relative to crude oiland soybean oil, and we expect some convergence going forward. Over the last 2 months, crude oil and soybean oil prices have risen 17% and 7%,respectively, while CPO prices have gained 1%. Over this period, CPO’s price discount to soybean oil has widened from 24% to 28%. We see more upside potential for CPO prices over the next 3-6 months on higher CPO biodiesel demand, potentially higher soybean prices and a narrowing price discount to soybean oil. We maintain our positive view on the plantations sector.
Watch Indo Agri, Wilmar, Golden Agri and First Resources.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment