Although CPO prices hovered largely below our assumption of RM4,000/MT in 2023, we reckon that downside will be cushioned by the onset of the periodic dry weather phenomenon (El Nino) that threaten production. According to the Environment Minister Nik Nazmi Nik Ahmad, this phenomenon may extend into April 2024. Still, we expect upsides to be capped as demand may remain sluggish, owing to the worsening of global economic outlook, persistently high inflation and  elevated interest rates environment.