Posted on July 7, 2009 - by kevinscully

Is the rally in palm oil prices over??

If you look at the STI Index stocks from January to July 2009, you will notice that plantation stocks or stocks with palm oil/plantation exposure dominated the top 5 gainers.  Jardine C&C was higher by 88.3% followed by Wilmar higher by 84.3% and Golden Agri higher by 56.3%.   These price gains were the result of a sharp rise in the price of palm oil which was then attributed to lower than expected supplies, lower than expected stock levels and expectations that demand for palm oil would rise because of the recovery in the global economy inline with firmer crude oil prices.

Crude palm oil price chart

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