CPO

CPO: Daiwa forecast rising demand to temper supply concerns. Note that Msia's palm-oil exports for the 1-25 May11 rose by 23% vs prior month, and excessive soy inventory in China is clearing gradually. Add that feed demand has been low on slow since late last year and trend is reversing and increased replacements should lead to rising feed demand, which could be catalyst by end of yr for soy crushing margins and indirectly benefit CPO prices…..

House positive on CPO related stocks from a six-month perspective. Ratings for CPO players under Coverage are: Wilmar (Hold); Golden Agri (O/p); Indofood Agri (Hold); First Resources (O/p); Mewah (O/p); Sime Darby (Hold); IOI Corp (Buy)