RHB Group Research analysts Hoe Lee Leng and Christopher Andre Benas are maintaining their ‘neutral’ rating for the plantation sector as they believe crude palm oil (CPO) prices may potentially decline following improving CPO output in the future.

“We believe prices have already peaked at above RM4,000 ($1,296.86) per tonne, and the risk for prices is now on the downside,” they write in an April 13 research note.

But the analysts note that the price moderation should only kick in from late 2Q2021 as productivity picks up, given the current low stock levels and the low output season.

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