PLANTATION
[%Oauc%] [%UfUn%] 
Research by TA
Neutral

“Growing Inventories and La Nina Concerns”

We reiterate our Neutral recommendation for the Plantation sector. No change to our 2024 average CPO price estimate of RM4,000 per tonne and RM3,800 for 2025. We would review our assumptions if: 1) South America's soybean supply turns out to be lower than market expectations, 2) a more promising demand recovery story, 3) lower-than-expected palm oil production, and 4) significant reductions in production costs.

Analyst(s):
Angeline Chin 
[%phdh%]

PLANTATION
$KLSE-KLK $KLSE-TSH 
Research by TA
Neutral

“Growing Inventories and La Nina Concerns”

We reiterate our Neutral recommendation for the Plantation sector. No change to our 2024 average CPO price estimate of RM4,000 per tonne and RM3,800 for 2025. We would review our assumptions if: 1) South America's soybean supply turns out to be lower than market expectations, 2) a more promising demand recovery story, 3) lower-than-expected palm oil production, and 4) significant reductions in production costs.

Analyst(s):
Angeline Chin 
angelinechin@ta.com.my