# Falling oil prices increase pressure on oilseed markets

> Oil prices fell about 5% over six sessions to their lowest since May 24, 2021, amid rising coronavirus cases and expectations of weaker fuel demand. Palm oil and canola futures also declined, with Malaysian palm oil down 2.4% and Winnipeg canola down 2%. Canadian canola harvest forecasts were cut to 15-17 million tonnes, with some estimates as low as 12 million.

- Date: 2021-08-19 · published 2021-08-19T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/11363-falling-oil-prices-increase-pressure-on-oilseed-markets
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Lower crude prices reduce the appeal of biofuel feedstocks, pressuring vegetable oil prices, while tighter Canadian canola supply offers some support. Oilseed price direction depends on whether energy weakness persists.

## Read by commodity

- SBO: bearish ▼
- WTI: bearish ▼
- BRENT: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SBO | 2021-08-20 | 1 | -5.1% | -3.2 | Falling crude oil and weaker palm and canola prices in the prior sessions reduced biofuel-linked demand and gave a bearish lead into the 20 August selloff. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-03-11 | [Ag Markets Feel Pinch As Oil Prices Plunge - ProAg](https://feedsoft.ai/events/54223-ag-markets-feel-pinch-as-oil-prices-plunge-proag.md) | -21.7% | -31.5% |
| WTI | 2021-07-16 | [Oil prices anticipate increase in production \| Reuters](https://feedsoft.ai/events/46225-oil-prices-anticipate-increase-in-production-reuters.md) | +0.6% | -3.6% |
| WTI | 2022-10-14 | [Oil prices fall more than 3% on recession worries](https://feedsoft.ai/events/39282-oil-prices-fall-more-than-3-on-recession-worries.md) | -3.8% | -3.3% |
| WTI | 2020-04-26 | [Oil price crash, COVID-19 weaken grains and oilseed markets](https://feedsoft.ai/events/53733-oil-price-crash-covid-19-weaken-grains-and-oilseed-markets.md) | +21.1% | +105.0% |
| WTI | 2018-12-24 | [Plunging oil prices show the market is worried about 2019 recession](https://feedsoft.ai/events/8701-plunging-oil-prices-show-the-market-is-worried-about-2019-recession.md) | -0.5% | +15.7% |
| BRENT | 2020-03-11 | [Ag Markets Feel Pinch As Oil Prices Plunge - ProAg](https://feedsoft.ai/events/54223-ag-markets-feel-pinch-as-oil-prices-plunge-proag.md) | -22.1% | -27.1% |
| BRENT | 2021-07-16 | [Oil prices anticipate increase in production \| Reuters](https://feedsoft.ai/events/46225-oil-prices-anticipate-increase-in-production-reuters.md) | +0.0% | -3.3% |
| BRENT | 2022-10-14 | [Oil prices fall more than 3% on recession worries](https://feedsoft.ai/events/39282-oil-prices-fall-more-than-3-on-recession-worries.md) | -3.1% | -1.0% |

## Sources

- graintrade.com.ua: https://graintrade.com.ua/en/novosti/padinnya-tcin-na-naftu-posilyue-tisk-na-rinki-olijnih-kultur.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.