Accumulate Golden Agri palm oil demand skyrocketing

Recent political scenario across the Middle East and North Africa (MENA) region seems to suggest the winds of change, the velvet revolution is beginning to commence there - whether at a gradual pace or a huge fast pattern. Commerce has stopped. Trucks stopped. And food supply stopped.

The demand outstrips supply. The demand for palm oil in these region will push a commodity rush.

At the other end of the world, huge, gradual increase in consumption and demand in India and China is not relenting. Demand outstrips supply again.

Now supply side economics. There is a downfall! Palm oil production from FFB has been going down the past quarters - flooding, rain, volcano - at the top producing nations - Indonesia and Malaysia - has reduced supply tremendously.

With a special tax by the governments of these countries, there is no doubt the cost and thus the final price of palm oil will gain handsomely. Prices are expected to reach 4000 RM this year.

Accumulate on Golden Agri, the second largest palm oil producer in Indonesia. Current prices still hovering at 70 cents (SGD) are so attractive you cannot miss it.