Plantation stocks higher on CPO rally

The benchmark March contract for CPO on the Bursa Malaysia Derivatives Exchange rose to as high as RM2,001 per tonne from last Friday’s close of RM1,901.

At 5pm, the March delivery jumped RM91 to RM1,992 per tonne. On Bursa, the Plantation Index gained 33.26 points to 4,187.42.

Kuala Lumpur Kepong Bhd jumped 50 sen or 3.88% to RM13.40 with 480,900 shares done.

PPB Oil Palms Bhd added 30 sen to RM10.10, Batu Kawan was up 10 sen to RM11.10 while Kulim Bhd closed nine sen higher at RM5.05.

 Sarawak Oil Palms Bhd rose eight sen to RM2.76 and United Plantations Bhd added five sen to RM9.35. IOI Corp Bhd ended the day unchanged at RM17.90.

EON Securities Research head Pong Teng Siew attributed the higher CPO futures prices to the rising corn and soybean prices.

A bank-backed analyst said CPO prices were expected to hit RM2,000 per tonne by the first quarter next year on the demand for biodiesel and tight supplies in edible oil.

The floods in Johor, Negri Sembilan, Pahang and Melaka could also affect CPO production, he said.

According to Bloomberg report, soybean prices may be headed for the biggest jump in three decades as farmers planted more fields with corns and rising demand.

Source: The Edge Daily