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RHB revises down CPO price assumptions, lowers target prices of planters under coverage

Khairani Afifi Noordin
Khairani Afifi Noordin8/12/2022 02:41 PM GMT+08  • 5 min read
RHB revises down CPO price assumptions, lowers target prices of planters under coverage
Given expectations of volatile CPO prices, RHB is favouring Wilmar due to its integrated and diversified business model. Photo: Bloomberg
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The price of crude palm oil (CPO) has fallen drastically on the unwinding impact of Indonesia’s export ban as well as fears of recession which has brought down all commodity prices.

To this end, RHB Group Research analyst Hoe Lee Leng has tweaked her CPO price assumptions down for 2022 to RM5,100 per tonne from RM5,300 per tonne previously.

RHB believes that the CPO price decline is slightly overdone, having fallen by 44% in seven weeks — more than the drop in soybean, crude oil and wheat prices at 31%, 17% and 16% respectively.

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