Asia's Plantations Likely to Benefit From El Nino — Market Talk

Asia's plantations sector is likely to benefit from the El Nino phenomenon, RHB Research analysts say in a report. An official El Nino advisory was issued by the U.S. National Oceanic Atmospheric Association, though the strength of the phenomenon has yet to be confirmed, the analysts say, adding that it sees upside risks to its crude-palm-oil assumption of 4,400 ringgit per ton for 2026 and 4,300 ringgit per ton for 2027, especially for 2027, as CPO prices should rise after El Nino. RHB Research upgrades its rating for the plantation sector to overweight from neutral, naming Johor Plantations Group, Sarawak Oil Palms, IOI Corp., Hap Seng Plantations, London Sumatra Indonesia and SD Guthrie as its top picks. (ronnie.harui@wsj.com)