HSBC starts Golden Agri-Resources (E5H.SG) at Overweight, sets target at $0.90, starts Indofood Agri Resources (5JS.SG) at Overweight with $3.38 target, Wilmar International (F34.SG) at Neutral with $7.01 target.

HSBC says structural, regulatory drivers mean house estimates 2011 demand growth for crude palm oil will be at decade high, with bottlenecks in expanding acreage, unfavourable weather pressuring supply ahead.

“We expect FY11e CPO prices to rise 24% year-on-year, which will favour upstream plays.”

Cites Indofood Agri, Kuala Lumpur Kepong (2445.KU) as top picks. Golden Agri flat at $0.72, Indofood down 0.8% at $2.64, Wilmar off 0.7% at $6.14.