Here's the biggest problem of Singapore's agribusiness players right now

Even industrial sector won't be spared.

According to Macquarie Research, overcapacity is still the dominant headwind in Singapore's agribusiness industry.

Here's more:

Overcapacity continues to plague both the agricultural and industrial subsectors. We saw a sharp jump in the CPO price on the Monday of our conference on the back of the Indonesian government‟s announcement of a 10% biodiesel blend, intended to increase demand for CPO and reduce oil and gas imports.

But as Sunaina Dhanuka has pointed out, there are myriad technical impediments and any official law could take some time to implement.

Even if all hurdles were cleared, the incremental demand impact would be minor (1% of global demand). Malaysia has also failed in delivering such blending in the past.

She took the opportunity to reiterate our Underweight on the upstream CPO sector and continues to see downside risk to consensus CPO price forecasts.

On the industrial side, neither Wilmar nor Noble provided much hope of an imminent return to the high and value generative ROE of yore, although we did come away from our Noble meetings feeling good about the new CEO‟s commitment to bring the company to its asset-light roots.