After experiencing a decline from its peak levels in the latter half of 2022, CPO price showed signs of improvements in early 2023. Specifically, according to data from Index Mundi, CPO prices rose by 9.3% in the review period, bouncing back from a 23- month low of $888.99 per ton in October 2022 and surpassing its five-year average of $963.50 per ton in March. This optimism was partly driven by positive economic conditions in India and China, the two largest CPO importers. In addition, CPO prices were supported by the expectation that ongoing drought conditions in South America will negatively impact the supply of soybean oil (a key substitute product).
