PETALING JAYA: The plantation sector is entering a more constructive phase amid stronger crude palm oil (CPO) prices, supported by strengthening biodiesel demand, improving industry economics and tightening supply dynamics, says TA Research. In particular, rising crude oil prices has enhanced biodiesel competitiveness, reinforcing policy support in key producing countries such as Indonesia and underpinning incremental demand for palm oil. “This widening cost differential is likely to encourage substitution towards palm oil to some extent, further supporting demand,” it added. For mid-cap stocks, TA Research expects United Malacca Bhd and TSH Resources Bhd to also benefit, albeit more modestly. “Recently, we saw signs of selective foreign buying to position for a stronger CPO price environment.

Source: The Star April 09, 2026 05:04 UTC