Equity Analysis /

MY : Agribusiness - Stock preview and Indonesia export policy

    Ivy Ng Lee
    Ivy Ng Lee

    Head of Malaysia Research, Regional Head of Agribusiness

    6 September 2022
    Published byCGS-CIMB

    Malaysia’s palm oil stock likely rose by 16% mom to 2.06m tonnes, as at end-Aug 2022F, due mainly to higher output. Indonesia palm oil producers and exporters would benefit from the recent decision to extend the waiver of export levy till end-Oct, in our view. The rising palm oil stock is likely to cap the CPO price upside, but downside is supported by the current wide discount of US$358/tonne against soya oil.