Morgan Stanley cuts Wilmar International (F34.SG) target price to $6.80 from $7.45, keeps Overweight; but says next catalyst is 1Q11.

Notes industry midstream margins have held up well despite rising feedstock costs, outlook for CPO refining looks solid, outlook for Chinese soybean crushing margins worse than before, but does not expect collapse.

“That said, industry margins have become a weaker read-across for Wilmar.”

Notes 3Q10 loss in oilseeds business when industry margins were positive; “for the shares to re-rate, the market must see reported growth resume at Wilmar...but this is unlikely to happen in 4Q10.”