Palm Oil

Palm Oil: sector a beneficiary of the Msian Budget 2011, and may see continued momentum. The govt will implement the 5% blending programme on a mandatory basis from Jun ’11, which is positive for biofuel demand. This in turn could create 500k MT of new demand for palm oil, which equates to about 30% of Malaysia's stockpile. Positive for CPO prices. Deutsche reiterates Buy on sector. Picks Indofood Agri (TP $2.80 ), Wilmar (TP $7.20 ). Has Hold call on Golden Agri ( TP $0.59 ).