With the Bursa KLSE cheering the CPO catapult from below Rm2000 to Rm3100, what is the reality? The CPO rose over last 3 months of 2019, yes last 3 months the meteoric rise and the next question is how will it perform over the next 12 months?
CPO price peak in Dec 2017 at about Rm3200+ and declined to a low of about Rm1900 (Nov2018). Traded range bound Rm2400 (Feb 2019) to Rm1900 (Sept 2019) range before making a dash up from Oct 2019 to end the year Rm3046! What is the average CPO price for 2019? ...Rm2250 average!!!
Obviously, we have all the news from different people calling for upgrade rating for stocks related to Palm Oil plantations listed!!! The normally modus operandi is to prepare a long list of rationale why it has to be UPGRADED!!!
Ask any old timer and you will be told commodities prices are NOT STATIC. What if the CPO prices start to decline over the next 6 months???? If we believe market is efficient and a forward looking price action, do we agree that market has priced in all the bullish factors???
The biodiesel program is shrouded with hazy logistics, storage, blending and refining facilities. While the hyper are bullish, ultimately someone will start to think of the rhetoric Malaysia biodiesel program the actual capabilities.
Afterall what are Malaysians famous for ...???? Lots of hot air and ... lack of determination!!!!
This is not the first time over the last 15 years the drama of biodiesel! More like the 2nd or 3rd time biodiesel CPO bull run.
If the average CPO price for 2019 was Rm3000, it will be a totally different story completely!!!
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