Our previous oil palm sector reports highlighted key drivers that could upturn the global CPO supply-demand balance and keep prices elevated. However, recent events across markets have led to a pullback in CPO prices. Specifically, increased supply from Malaysia and Indonesia (the two largest producers of CPO) and an expected slowdown in demand from China and India led to a 29.2% YoY pullback in CPO prices in Q4’22. Going into 2023, we expect global and domestic CPO prices to be slightly weaker.