First Resources

First Resources: No significant news to note. However, share price might be up on the 10% crude palm oil (CPO) prices hike from mid-Sep to mid-Oct, on the back of bad weather which affected the peak harvest season for soybeans (a substitute crop to palm oil) in the US. Separately, the biodiesel theme has been making a come back, driven by supportive policies to be implemented by the Malaysian and Indonesian governments. The two countries, which account for ~85% of global palm oil production, intend to increase the use of palm oil in their biodiesel blends. If successful, market watchers anticipate that the incremental CPO demand attributable to biodiesel mandates may more than offset the expected increase in CPO supply for FY13-14, and lead to structurally higher CPO prices, thereby giving palm oil counters an added boost in stock price.