Crude palm oil prices are expected to remain elevated as rising El Nino risks add to geopolitical supply concerns, Kenanga IB analyst Khoo Teng Chuan says in a note. The U.S. agency, the National Oceanic and Atmospheric Administration, has declared that El Nino has begun and sees a 63% chance of it strengthening into a severe event later this year, he notes. With edible oil supplies already tight amid resilient food and biofuel demand, plantation stock valuations remain attractive, he adds. Kenanga maintains an overweight rating on the Malaysian plantation sector, citing resilient edible oil demand and higher CPO prices. IOI Corp., Kuala Lumpur Kepong and PPB Group are among its top picks. (yingxian.wong@wsj.com)
Dow Jones Newswires
El Nino Risks Likely Supporting Malaysian Plantation Sector — Market Talk
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Crude palm oil prices are expected to remain elevated as rising El Nino risks add to geopolitical supply concerns, Kenanga IB analyst Khoo Teng Chuan says in a note. The U.S. agency, the National Oceanic and Atmospheric Administration, has declared that El Nino has begun and sees a 63% chance of it…