Trading strategy pushed for plantation sector amidst ‘uncertainties’: RHB
Crude palm oil prices have increased risks if Indonesia's export ban ends.
There should be a trading strategy for the plantation sector as there will be risks in crude palm oil (CPO) prices once the Ukraine-Russia conflict and export ban in Indonesia ends, financial services group, RHB, said.
With the ban on exports of CPO and its derivatives in Indonesia, supply and demand fundamentals are even tighter in the short term.
But RHB said markets need to address the risks once the Indonesia export ban is lifted and the Russia-Ukraine war ends.
It said stock levels in Ukraine and Indonesia could build up, vegetable oil supply will be abundant and vegetable oil prices will decline.