May stockpile has inched up only marginally MoM

Stockpile came in below Bloomberg’s estimates MPOB’s May 2021 stockpile of 1.57mt came in below Bloomberg’s survey estimates of 1.63mt, and stayed tight. As we enter into seasonally high output months in 2H21 and with new oilseeds supply from the Northern Hemisphere anticipated to hit the market around the same time, the CPO price risk is on the downside. However, CPO price is now well supported by its huge discounts to other oils. Maintain our POSITIVE view
as 2021 will be a good year. Preferred BUYs are KLK, SOP and BPLANT.