PLANTATIONS
 [%PvTE%] [%dFwD%] 
Research by PIB
Neutral

“Inventories Rose Unexpectedly in April”

Palm oil inventories in Malaysia surprisingly reversed in April after shrinking for 5 consecutive months as production continued to recover while exports weakened. The bearish data sent the CPO futures to RM3,790/mt, down 1.1%. YTD, CPO price averaged at RM4,054/mt. In view of higher production in the subsequent months, we expect inventory to continue trend uptrend, which may exert further pressure on CPO prices in the near-term. Maintain Neutral on the sector.

Analyst(s):
Chong Hoe Leong
[%eRwt%]

PLANTATIONS
 $KLSE-SWKPLNT $KLSE-TAANN 
Research by PIB
Neutral

“Inventories Rose Unexpectedly in April”

Palm oil inventories in Malaysia surprisingly reversed in April after shrinking for 5 consecutive months as production continued to recover while exports weakened. The bearish data sent the CPO futures to RM3,790/mt, down 1.1%. YTD, CPO price averaged at RM4,054/mt. In view of higher production in the subsequent months, we expect inventory to continue trend uptrend, which may exert further pressure on CPO prices in the near-term. Maintain Neutral on the sector.

Analyst(s):
Chong Hoe Leong
chonghoeleong@publicinvestbank.com.my

$SWKPLNT / 5135 (SARAWAK PLANTATION BERHAD)