NEWSROOM
 

Palm oil may remain above RM3,000/tonne

 

Crude palm oil (CPO) prices may still hold above RM3,000 per tonne in June, says ECM Libra Capital Sdn Bhd.

However, slower exports to Pakistan coupled with higher production is expected to eventually bring prices down, it said in a research note today.

ECM Libra also said inventory levels in Malaysia rose nine per cent over the month of March, hitting 1.6 million tonnes.

With the continued strong recovery in production coupled with lacklustre exports, inventory levels could increase further going into the second quarter of the year, it said.



"Should inventory levels cross the two million tonnes level, we believe that the industry would start talking of a CPO oversupply," it added.

To note, the historical high in inventory level was 2.27 million tonnes in 2008.

For stock pick, ECM Libra said it had no preference for any plantation play at the moment but prefered Boustead Holdings because of the merger and acquisition activity taking place within the group. -- Bernama

 

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