Plantation Sector Is Expected To Gain Significant Momentum

10 Rabiulakhir 1433

KUALA LUMPUR, March 2 , 2012- The plantation sector is expected to gain significant momentum this year following a good performance in 2011, said JF Apex Securities Bhd in a research note.

It said demand for crude palm oil (CPO) would remain resilient and production in the first half of 2012 was expected to be lower due to bumper harvest last year and lag effect of heavy rainfall in the second half of 2011.

"The lag effect of the heavy rainfall is expected to lead to lesser formation of fresh fruit bunches (FFBs).

"However, the rainfall is predicted to be normalised in the first half of this year. Therefore, there will be no major shortfall for the FFB production in the second half of this year," it said.

JF Apex said the CPO price for the first quarter of this year would hover between RM3,100 and RM3,200 per tonne mainly due to lower production.

Source- BERNAMA