Singapore-listed palm oil stocks seen benefiting as prices rise, ESG risks ease

into promising Singapore stocks as part of a Government-led effort to boost the local stock market. In an Oct 2 report, Aletheia Capital analyst Nirgunan Tiruchelvam noted that tighter crude palm oil (CPO) supplies and strong demand from Asia are expected to drive up prices, with India set to increase palm oil imports and China likely to continue buying as its economy recovers. Combined with volatile weather patterns such as El Nino, global palm oil supplies could fall to a multi-year low by 2027, pushing prices even higher, Mr Tiruchelvam said. He expects CPO prices to grow by about 10 per cent per year over the next few years, averaging US$1,060 per tonne in 2025, US$1,166 in 2026 and US$1,282 in 2027, compared with the current spot price of US$962. In addition, a rollback of environmental rules under US President Donald Trump’s administration could ease the ESG constraints on the sector. Over the past decade, many investors have steered clear of oil palm plantation stocks in ...