# Commodities 2022: Palm oil prices could retreat by H2 as low demand, higher production play on markets

> S&P Global expects palm oil prices to be supported in early 2022 by supply tightness, then ease in the second half as foreign workers return to Malaysian estates and output recovers. Palm oil breached $1,000/mt in 2021 and hit record highs. Low demand from India and China and a narrowing price gap with rival vegetable oils could cap prices.

- Date: 2021-12-31 · published 2021-12-31T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/15859-commodities-2022-palm-oil-prices-could-retreat-by-h2-as-low-demand-higher
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

A forecast decline in H2 2022 would weigh on palm oil and competing vegetable oils if demand stays soft. Fertiliser cost increases are a continued pressure on producer margins.

## Read by commodity

- PALMOIL: bearish ▼

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/123121-commodities-2022-palm-oil-prices-could-retreat-by-h2-as-low-demand-higher-production-play-on-markets

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