MY’s CPO spot price averaged ~MYR5,171/t in 4Q21 (+53% YoY, +17% QoQ), a new record. Even for ID, 4Q21 CPO price has averaged ~IDR14,087/t (+46% YoY, +15% QoQ; or MYR4,134/t). The high prices are in part supported by fear of supply disruption due to sporadic flooding. We estimate MY’s Dec 2021 CPO output at 1.45mt (-11% MoM), bringing 2021’s output to 18.1mt (-5% YoY). With record prices, we expect growers to deliver another set of sterling results in 4Q21. Preferred BUYs: KLK, SOP & BPLANT.
KE: Regional Plantations – Rising above the flood | POSITIVE
