Broker Name: OCBC Group Research
Date of Report: 17 March 2026
Excerpt from OCBC Group Research report.
Report Summary
- OCBC Group Research revised its 2026 crude palm oil (CPO) price forecast upwards to MYR4,300/mt, citing elevated prices supported by geopolitical risks, energy market spillovers, and Indonesia’s biodiesel programme. However, supply improvements and high inventories in Indonesia and Malaysia may limit further price upside.
- Singapore-listed plantation stocks, especially upstream players like Bumitama Agri (BAL), have outperformed due to stronger CPO prices and biofuel demand expectations. OCBC recommends accumulating BAL on pullbacks and remains constructive on Wilmar International (WIL) for its integrated business model and operational strengths.
- Regulatory overhang from Indonesia’s forestry land review has largely eased, with most companies having made provisions. Higher CPO prices are supportive of upstream earnings but could challenge downstream margins due to rising input costs and delayed price pass-through.
- Key demand drivers come from India (price-sensitive and supportive) and Indonesia (structural domestic demand from biodiesel). OCBC expects near-term volatility in CPO prices but anticipates gradual normalisation as supply improves and geopolitical risks fade.
above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website : https://www.ocbc.com
