Palm Oil Prices Push SGX-Listed Planters to Outperform Estimates

Singapore-listed palm oil players are poised to report stronger second-quarter earnings as higher crude palm oil (CPO) prices lift plantation margins.

Analysts expect upstream-focused producers, including First Resources and Bumitama Agri, to benefit most from the rally in palm oil prices. Integrated groups such as Wilmar and Golden Agri-Resources could have part of their gains offset by higher downstream feedstock costs.

The price of palm oil futures has risen by around 17 per cent in the year to date, supported by tightening supply expectations from El Nino, Indonesia's energy mandate, and renewed concerns that the disruption to Red Sea shipping could lift crude oil prices and increase demand for palm oil-based biodiesel.