Malaysia's plantation sector was raised to 'overweight' from 'neutral' at RHB Research Institute Sdn Bhd, on higher crude palm oil price forecasts.

The forecast was raised by RM200 a metric ton for 2011 and 2012 to RM3,100 a ton and RM2,900 a ton respectively, Hoe Lee Leng, an analyst at RHB Research said in a report today.

Crude palm oil 'prices are likely to remain at high levels potentially' until the first half of 2011, before falling in the second half of the year as productivity recovers, Hoe said. -- Bloomberg