Wilmar

Wilmar: Oil World today said global biodiesel output will expand this year at the slowest pace since at least 2008, amid EU export curbs on Argentine. EU was previously one of the strongest supporters for biodiesel , which is a key driver for palm oil plays. This adds a further blow to the industry after the EU last wk imposed tariffs on Argentine and Indonesian biodiesel. Amongst the companies hit, Wilmar was slapped with the highest tarigg of 9.6%. Given the lack of disclosure on biodiesel contributions by CPO companies, market participants will unlikely be able to quantify the impact of the latest EU’s move. We anticipate continued overhang on the palm oil counters, amid the on-going uncertainty.