Will CPO Be Un-seasonally Strong?

In our 26 October 2022 note (PLANTATIONS: PRICES STABILISING AROUND THE KEY SUPPORT ZONE), we highlighted that the Bursa Malaysia Plantation Index (KLPLN) and Crude Palm Oil (CPO) have tested their respective long and medium term’s support zone and that both were showing possibility of developing a short-term multi-month counter-trend rebound. Specifically, on KLPLN we pointed out that market participants would likely be paying close attention to the index’s price actions around its 50-day SMA line for clues on the sector’s next directional bias.