CPO Prices To Remain Stable In February - Analysts

KUALA LUMPUR, Feb 12 (Bernama) -- Crude palm oil (CPO) prices are expected to remain stable this year, ranging between RM4,000 and RM5,000 per metric tonne (MT), according to analysts.

MIDF Amanah Investment Bank Bhd’s research arm, MIDF Research, said that for this month, stability will be driven by restocking activities ahead of Ramadhan, alongside slower palm oil output and lower closing stock levels.

“The CPO price for delivery ended the month at RM4,600 per MT, with an average price of RM4,673 per MT (-8.7 per cent month-on-month, +23.5 per cent year-on-year) due to concerns over escalating supply risks pre-Ramadhan,” MIDF Research said in a note today.

Echoing MIDF, CIMB Securities Sdn Bhd expects CPO prices to remain firm, given the low palm oil stock levels in key producing and consuming countries.

“We maintain our average CPO price forecast of RM4,200 per MT for 2025 and project planters to report better earnings in the fourth quarter of 2024 (4Q 2024), supported by higher CPO prices and increased production from Indonesia,” it added.

CIMB also reiterated its ‘overweight’ rating on the sector, with Sime Darby Plantation, IOI Corporation, and Hap Seng Plantations as its top picks.

Meanwhile, Hong Leong Investment Bank Bhd Research maintained its 2025 and 2026 CPO price assumptions of RM4,000 per MT and RM3,800 per MT, respectively, as well as its ‘neutral’ stance on the sector.

“We maintain the view that CPO price will remain at an elevated level in the near term, (possibly until the end of the 1Q 2025, on the back of weak near-term output prospects), and CPO price strength to dissipate post-1Q 2025,” it added.

-- BERNAMA