0144 GMT - Investors may consider a short-term trading strategy for palm oil in 1Q this year with planters expected to post strong 4Q 2024 results, Maybank IB analyst Ong Chee Ting notes. However the earnings tailwinds may not be sustainable, he cautions. CPO prices have risen recently due to weaker output but its high price premium over other vegetable oils could limit demand, he says. The spread between palm oil and gas oil has widened following a decline in crude oil prices, which may discourage biofuel usage, he says. Indonesia's B40 biodiesel mandate also faces risks if palm oil and gas oil prices remain elevated, he adds. Maybank maintains a neutral rating on Southeast Asia's plantations sector and pegs SD Guthrie, Genting Plantations and Bumitama Agri as its top picks. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
February 11, 2025 20:44 ET (01:44 GMT)
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