PALMOILMAGAZINE, KUALA LUMPUR — Hong Leong Investment Bank Bhd (HLIB) has maintained its crude palm oil (CPO) price assumption at RM4,200 per metric ton, while keeping its 2026 earnings projections unchanged. The bank is awaiting further clarity following Indonesia’s decision to postpone the implementation of the mandatory B50 biodiesel program.
In its latest research note, HLIB stated that fourth-quarter FY2025 financial results of plantation companies under its coverage are expected to remain broadly in line with market expectations, despite weaker year-on-year performance in the upstream segment.
“On a quarter-on-quarter basis, earnings are likely to be mixed, reflecting uneven fresh fruit bunch (FFB) production trends. Meanwhile, downstream performance remains challenging,” HLIB noted in a report by Bernama on Wednesday (11/2/2026).
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On the price front, HLIB highlighted that pre-festive restocking activities, combined with seasonally lower output, have lifted CPO prices by approximately 4% to RM4,134 per metric ton since January 26. As a result, the year-to-date average CPO price currently stands at around RM4,050 per metric ton.
The bank’s stance signals cautious optimism, as market participants continue to monitor supply-demand dynamics and policy developments that could shape price direction in the months ahead. (P2)
