Palm Plays Bounce Back From Biofuel Selloff

Dow Jones] Singapore palm plays heading higher as stocks recover somewhat from recent selloff on worries that political opinion may be turning against biofuels. Wilmar (F34.SG) +0.4% at S$4.74, Indofood Agri Resources (5JS.SG) +1.8% at S$2.24, Golden Agri-Resources (E5H.SG) +0.6% at S$0.79, First Resources (EB5.SG) flat at S$1.10. All outperforming FTSE ST All Share, currently down 0.1%. Credit Suisse notes, U.K. government backtracked from biofuel targets, driven by worries that use of land for biofuels may push up food prices. But says, according to forecasting service Oil World, global edible oil output not currently enough to meet governments' biofuel target in any case; adds surge in soy oil prices should also boost demand for palm oil, given big price gap vs palm. Reiterates Overweight call on Asian Palm oil sector.