CPO

CPO: Nomura has CPO report. Cite the great buying fair for food exposure, and recent correction in soft commodities and corresponding equity underperformance provide an attractive broad-based BUYing opportunity. Crude oil support and any prospects of QE3 should prevent commodity prices from going into free-fall as global inventories are at multi-yr lows…..

Continue to like planters (IFAR, Sime and LonSum), Olam, Noble, Mewah, Indian agri stocks, and think earnings will be near-term catalysts. US planting report may provide the fillip to palm oil as soy may lose the acreage battle. Note that Investor’s top picks seemed to be KLK, IFAR and London Sumatra. House also interested in niche plays like China Minzhong and GMG, as well, with broad consensus positive on rubber. Neutral on Wilmar.