bumper crop year

Will 2017 be a bumper crop year for plantation stocks?

SINGAPORE (Jan 4): RHB is maintaining its “neutral” stance on the plantation sector with its top pick as Golden Agri for its diversified land bank, crude palm oil (CPO) price sensitivity and stock liquidity.

The stock has been given a target price of 46 cents.

In the research house’s Singapore Strategy report on Tuesday, RHB believes CPO prices could remain at high levels up to 1Q17 on the back of the strong US dollar as well as a still-weak CPO output due to the 24-month lagged impact of El Nino.

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