# Palm oil reaches highest since 2022, adding to food price risks

> Palm oil futures in Kuala Lumpur rose as much as 2.6% to 4,500 ringgit a metric ton on October 23, the highest since July 2022, with the year-to-date rally above 20%. Indonesian output may reach only 51 million tonnes this year, down from 54.8 million in 2023, due to lingering El Niño impacts and aging, slow-to-replant plantations. Palm has also traded at a rare premium to soyoil.

- Date: 2024-10-24 · published 2024-10-24T12:00:00.000Z
- Category: weather · region Global · magnitude medium
- Page: https://feedsoft.ai/events/27955-palm-oil-reaches-highest-since-2022-adding-to-food-price-risks
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Persistent supply shortfalls in the two largest producers keep vegetable oil prices firm, adding to feed and food cost pressure. The premium over soyoil may also shift buyers toward soy-based alternatives.

## Read by commodity

- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2024-11-04 | 5 | +9.9% | 4.2 | Lower Indonesian output expected due to El Niño and aging trees, plus a palm premium over soyoil, signal supply tightness supporting the rally. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2024-10-25 | [Malaysia’s palm oil surge: What’s driving prices to biggest highs since 2022?](https://feedsoft.ai/events/4981-malaysia-s-palm-oil-surge-what-s-driving-prices-to-biggest-highs-since-2022.md) | +9.4% | +8.3% |
| PALMOIL | 2023-03-02 | [Palm ends at highest since Nov on flooding woes, weaker ringgit - Markets - Business Recorder](https://feedsoft.ai/events/36952-palm-ends-at-highest-since-nov-on-flooding-woes-weaker-ringgit-markets-business.md) | -0.0% | -5.3% |
| PALMOIL | 2026-10-22 | [Palm oil prices to stay high next year on Southeast Asia drought](https://feedsoft.ai/events/523-palm-oil-prices-to-stay-high-next-year-on-southeast-asia-drought.md) | -0.4% | — |
| PALMOIL | 2023-06-27 | [Palm oil will rise in price in the second half of the year – forecast](https://feedsoft.ai/events/35580-palm-oil-will-rise-in-price-in-the-second-half-of-the-year-forecast.md) | +12.1% | +13.3% |
| PALMOIL | 2023-09-28 | [Risks to global food commodity prices from El Niño](https://feedsoft.ai/events/33997-risks-to-global-food-commodity-prices-from-el-nino.md) | -2.3% | -3.9% |

## Sources

- ukragroconsult.com: https://ukragroconsult.com/en/news/palm-oil-reaches-highest-since-2022-adding-to-food-price-risks/

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