Green Diesel Demand Boosts SBO Prices, But Not CPO Prices
CPO spot price has weakened about 25% from its peak in mid-May 21. The largest adjustment took place during the last two weeks when soybean oil (SBO) price dropped on concerns of possibly lower biodiesel blending as well as more soybean production as weather conditions improve. Palm oil production has exceeded market expectations during the last three months. Price is on a downtrend but from a very elevated level. Share prices of plantation companies will remain under pressure. Maintain MARKET WEIGHT.