MIDF: CPO prices to average RM2,700 a tonne

KUALA LUMPUR: The crude palm oil (CPO) prices are expected to remain strong and average around RM2,700 per tonne this year, says MIDF Research.

The research house said CPO exports to China and India would pick up in the second quarter of the year as the winter season was expected to end soon.

Palm oil demand also tends to pick up ahead of Ramadhan and the festive season, it said in a statement today.

"A prolonged dry weather in palm oil producing countries as a result of the El Nino phenomenon remains a supply threat.

"And, higher CPO prices will lift the earnings of plantation companies," it added.

The research house is maintaining a positive stance on the plantation sector with top picks being Sime Darby, TH Plantation and Felda Global Ventures, at

target price of RM10.26, RM2.10 and RM5.20 respectively.