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HLIB: The CPO Prediction in 2020 was Improved



HLIB: The CPO Prediction in 2020 was Improved

KUCHING –The research team of Hong Leong Investment Bank Bhd (HLIB Research) in the report believed that the corona virus (Covid-19) epidemic would be negative to the palm oil demands and price (namely if Covid-19 keeps happening). The cheap crude palm oil (CPO) would make much different price to the gas.

The question remains, is it worth that palm oil biodiesel mandatory program still runs in Indonesia, Malaysia, Brazil, the United States of America, and Europe? But HILB Research noted that it is not possible for the government of Indonesia to revise the biodiesel mandatory policy. HLIB Research also noted that the CPO spot price gets weaker more than 25% (from the most expensive one reaching RM. 3.111 per ton) since January 2020 because of Covid-19 and cheaper crude oil price in the recent days.

The CPO price assumption reaching RM 2.550 per ton in 2020 to 2021 needs to revise. The palm oil sector operational in the fourth quarter of 2019 (4Q19), referring to the research noted that the quarter to quarter (q-o-q) increased namely for the better CPO selling price. As quoted from theborneopost.com, year on year (y-o-y), HLIB Research noted that the CPO price made the better operational. The fresh fruit bunch (FFB) production was varied in many companies. (T2)

For more, please read InfoSAWIT, Mei 2020

 


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