SINGAPORE (Dec 8): UOB Kay Hian is keeping its “overweight” rating on Singapore-listed plantation companies on the back of higher crude palm oil (CPO) prices, which surged to a 2-year high of US$748 per tonne on Monday.
The increase in Dumai and Belawan CPO prices was “beyond our expectation,” says UOB’s Singapore Research Team in a Thursday report. “We were expecting CPO prices to hover in the range of US$680-720/tonne in 4Q16.”
The research house says this could have been due to a tight supply of palm oil, and CPO prices tracking soybean futures’ performance.
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