Plantation Sector In Red Alert
CPO price stay weak at RM 1,520/MT till next year. Current record inventory of 2.1m MT in Malaysia to continue to rise as Chinese import volumes weaken and slower GDP growth in Asia become more apparent.
Early of the year 2007, we had see a lot of plantation company invest land to product more palm oil and now the supply is over causing inventory will continue to rise till 2010. All plantation stock price may drop to vary low level in this coming months and now if you holding plantation stock either cut loss now or hold for 3 year till end of year 2010.
Plantation sector is in red alert, I think now is not the time to jump in into plantation sector because now is far from bottom yet.
1 comments:
Hi Sir,
CPO is nearly same movement with the crude oil. I believe crude oil will come back again on Sept 2009 :D
any idea?
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