Wilmar

Wilmar: stock is -0.3% vs the STI’s +0.6%, extending its underperformance for at least the second day. Govt officials in China, the largest user of cooking oils, reportedly told suppliers to avoid raising wholesale prices for packaged products “unless it is absolutely necessary”, to avoid stoking inflation. Meanwhile, soybean futures traded in Chicago reached a record US$16.915/ bushel on Jul 23 as the U.S. endured its worst drought in a half century. China is the world’s largest soybean importer and second-biggest for palm oil. Shanghai JC Intelligence Co notes, containing cooking-oil prices may hurt crush margins for producers including Wilmar. and Cofco and limit imports of soybeans and palm oil. Says this will add pressure to crushing and refining businesses already suffering from negative margins. Believes “it’ll probably be bearish” for the global oilseed market.