07.05.2021 (www.thestar.com.my) -  KUALA LUMPUR: CGS-CIMB has maintained its “neutral” rating on the country’s agribusiness sector following mixed indicators in the crude palm oil (CPO) stocks, production and exports.

A survey by CGS-CIMB Futures said Malaysia’s CPO output up 6.8% month-on-month (m-o-m) to 1.52 million tonnes in April 2021, while palm oil exports likely grew 12.5% m-o-m based on export statistics by cargo surveyors.

“We estimate that Malaysia’s palm oil inventory probably grew by 1.8% m-o-m but we also forecast that the inventory would decline by 28% y-o-y to 1.47 million tonnes at end of April 2021, ” it said.

CGS-CIMB said this was broadly in line with historical trends, where Malaysian palm oil stocks in April have risen at an average 1.3% m-o-m over the past 10 years.

Despite this, the projected palm oil stock level in Malaysia remains tight as it is 26% below historical average April palm oil stock levels of 1.98 million tonnes for the past 10 years.

CGS-CIMB said CPO production trending higher m-o-m but lagging behind 2020’s level and the output was estimated to increase by 7.0% m-o-m to 1.52 million tonnes in April 2021. — Bernama

https://www.thestar.com.my/business/business-news/2021/05/07/cpo-has-mixed-indicators