Plantation companies
Speed bump ahead

Malaysia’s Nov13 palm oil stockpile of 1.978m MT (+7% m-o-m) was higher than expected, on slowing exports. Dec13 stockpiles projected to decline further on low crop season, lower imports. Palm oil price discount to soybean oil to narrow further; but weaker soybean oil prices may drag down CPO prices in 1QCY14. Take advantage of near-term positive sentiments to lock-in profit. We cut LSIP to Fully Valued; and downgraded both AALI and IFAR to HOLD. 

Source: HwangDBS Research - 11 Dec 2013