Our latest Sector Focus makes the case for the three UK-listed Indonesian palm oil producers, M.P. Evans, Anglo-Eastern Plantations and REA Holdings against a backdrop of CPO trading at $1,430/t (CIF), up 12.8% year-to-date and underpinned by structural support: Indonesia's B50 biodiesel mandate (now confirmed for a 1 July 2026 launch, adding an estimated 3.5–4.0Mt of incremental demand), tight Malaysian stocks and a ~98% probability El Niño that threatens yields into FY27. We profile three businesses with identical commodity exposure but very different cash stories and argue the recent share-price wobble on Indonesia's new single-gate export channel and tighter FX rules is overdone: the rules bind at the refinery gate, not the plantation, leaving the risk-reward skewed firmly to the upside. We remain buyers of all three.
