15/09/2012 (The Star) - CIMB Equities Research sees minimal impact on crude palm oil (CPO) price following on news that the EU may reduce the use of biofuels made from crops to 5% of total energy consumption in its transport sector in 2020, from 10%.

“This is negative as it could cut the growth potential of edible oils for biodiesel usage in the medium term,” it said on Friday.

CIMB Research it believed the immediate impact on CPO price is minimal as current usage of biofuels in the EU transport sector of 4.5% is below the 5% target.

“But this could lower future demand growth potential of biodiesel from the EU. We keep our Trading Buy call on a potential short-term spike in price due to weather concerns. Top picks are Astra Agro, Sime, and Indo Agri,” said the research house.