CPO: Palm oil up 1.4% today, partly due to crude oil rising and possibly due to floods in Msia. Estates in Borneo and southern Johor have been flooded affecting transportation. Situation in Johor could become worse after 3 main rivers which are near oil palm estates burst their banks on Sunday and another 5 more rivers could over flow...
Apart from transportation, heavy rains and floods would affect yield quality of the palm fruits. Generally beneficial to Golden Agri and Indo Agri if prices continue to climb but both counters have been falling in a downward trend despite palm oil prices edging up recently. Golden Agri trades at current P/E of 8.87x and Indofood Agri at 23.20x.
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