Malaysian palm stockpiles seen at 3.14 mil tons in December: CIMB

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KUALA LUMPUR (Jan 7): Stockpiles est. +4% m-o-m, +15% y-o-y to new record 3.14 million tons at end-December, CIMB regional head of agribusiness Ivy Ng says in a Jan 4 report.

* NOTE: Malaysia Palm Reserves Seen Hitting Fresh Record

* Rising stockpiles in December likely to cap price upside near term: Ng

** CPO may trade in RM2,000-2,200 per ton range in Jan.

** Historically, CPO prices tend to bottom when stockpiles peak, such as in November 2015

* December production est. -1% m-o-m to 1.83 million tons, according to survey of 24 plantation areas by CIMB Futures

** Compares to average m-o-m drop of 10.5% for December past 10 years

** Estates in Sarawak posted almost 10% m-o-m drop in output offset by stronger output in Peninsular Malaysia and Sabah

* Exports seen +5% m-o-m to 1.44 million tons in Dec.

** Slow recovery in exports likely due to competition from Indonesian producers, delayed shipments to India as traders positioned for cut in Indian import duties

* Plantation companies may report weaker 4Q earnings y-o-y on lower prices

* CIMB maintains neutral rating on sector; Genting Plantations top pick