Plantation Sector Sees Bright Outlook on Strong Demand

The plantation sector's outlook remains positive due to several factors that are expected to support crude palm oil (CPO) prices in the coming years. TA Research predicts that CPO prices will remain firm until at least 2027, thanks to Indonesia's B50 biodiesel mandate and stronger demand from India.

However, there are some potential risks and challenges that could impact the sector. Stronger seasonal production and competitive soybean oil prices may limit further upside in the near term. Additionally, weather-related supply risks, such as those associated with El Niño events, may also affect palm oil production.