Form is temporary, class is permanent. In this regard, will Wilmar share price stage a “return of the King”? The counter has been in mighty form lately due to the resurgent crude palm oil (CPO) prices. The monsoon season has caused floods in many areas of the oil palm plantations and caused tight supply. According to Malaysian Palm Oil Board (MPOB), CPO prices are expected to be trading above RM3,000 per tonne mark until the first quarter of 2021.
As Wilmar is one of the world’s largest oil palm plantation owners, CPO prices have always been proxy for Wilmar share price. In fact, the recent explosive form of Wilmar share price should be attributed to the robust CPO prices. To put things into perspective, the current CPO price of RM3836 was nearly a decade record high.