OUTLOOK 2015: COMMODITIES ·
Subscribers

A quieter year ahead for the palm oil sector

With a generally neutral view, analysts are in favour of younger, fast-growing planters on SGX, such as Bumitama Agri and First Resources

Singapore

IT'S been an adrenaline-charged year for the palm oil sector, which saw crude palm oil (CPO) futures surge to an 18-month high in March, before rollercoastering down to five-year lows in September. But as 2014 draws to a close, analysts are expecting a relatively muted year ahead for the palm oil industry.

While prices are on track for a gradual recovery, lower soyabean oil prices could cap its rise, with volatile crude oil prices holding the wild card spot.

A bumper soyabean crop in the US, coupled with an expected record harvest from Brazil and Argentina in early 2015 has triggered a decline in soyabean oil prices, stealing the shine from palm oil in the edible oil space.

A shift in the...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes