Palm Oil: CLSA cut its CPO price outlook after Indonesia's delayed implementation in its biodiesel policy and a sharp collapse in crude oil prices.
Supply of CPO is expected to peak in 2015 and only see a material decline from 2017 onwards as production growth slows due to a reduction in new plantings.
That said, the stocks are offering good value now given the recent sharp sell-down, with some trading below replacement cost.
The house has BUYs on Wilmar (TP: $3.53) and First Resources (TP: $1.92).
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