0133 GMT - Crude palm oil price strength is expected to wane by mid-year, with market volatility driven by geopolitical risks and shifting government policies, especially Indonesia's unsustainable B40 biofuel mandate, Maybank analyst Ong Chee Ting says in a note. Without a rise in crude oil prices to narrow the palm oil-gasoil spread, CPO spot prices could face downward pressure post the Ramadan festival, he reckons. Ong recommends a short-term trading approach in 1Q but maintains a 12-month neutral outlook for Southeast Asia's plantation sector. Maybank pegs SD Guthrie, Genting Plantations and Bumitama Agri as its preferred buys. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
January 08, 2025 20:33 ET (01:33 GMT)
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