SINGAPORE (Dec 7) :
2017 could finally be a better year for commodities as higher fresh fruit bunches output and crude palm oil prices fuel improved earnings for upstream palm oil companies.
“The key driver for 2017 earnings will be higher FFB (Fresh Fruit Brunches) yields as the El Nino effect fades,” said CIMB analyst Ivy Ng in a note on Tuesday, adding that the higher yields would reduce production costs per ton for crude palm oil (CPO).
Ng points out that FFB yields in 2016 had been hurt by the El Nino drought and the haze in 2015, but weather conditions have since improved. The majority of the yield recovery is expected to be seen in 2HFY17.
CPO prices could also benefit from a number of factors including the fall in palm oil supply from the 2015 El Nino, higher usage of biodiesel in Indonesia, a La Nina event that could impact soybean supplies, high biodiesel mandates in US and Indonesia, and higher crude oil prices.
CIMB is forecasting CPO prices to average RM2,600 per ton ($832.7 per ton) for 2017, above the average price of RM2,571.5 for most of 2016.
SGX Market Another Hot Stock of the Day
- GENTING SING
- SINGMYANMAR
- SINGTEL
- SIA
So Earn More These Stock are profitable for Intraday & Contra Day Trader.
Our Stock Recommendations :
- SGX INTRADAY SIGNAL: BUY INDOFOOD AGRI AT 0.555 TARGET 0.574, 0.593 SL 0.535…
- KLSE INTRADAY SIGNAL: BUY CAB AT 1.58 TARGET 1.63, 1.69 SL 1.527 …
- KLSE INTRADAY SIGNAL: BUY AXREIT AT 1.64 TARGET 1.69, 1.75 SL 1.57 …
Get Live Trading Signal With Us – www.equityprofit.com
daily equity signals, premium stock signals, equity signals Singapore, equity investment signals, comex commodity signals, daily stock signals, forex signals advisory, Singapore stock signals
No comments:
Post a Comment