# Palm hits lowest in over 1-1/2 years as recession fears dent demand - Markets - Business Recorder

> Malaysian palm oil futures fell 8.46% on Wednesday to close at 3,225 ringgit per tonne, touching their lowest since February 2021 intraday. Losses were driven by recession fears, a stronger dollar and selling by traders clearing long positions.

- Date: 2022-09-28 · published 2022-09-28T12:00:00.000Z
- Category: macro · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/39674-palm-hits-lowest-in-over-1-1-2-years-as-recession-fears-dent-demand-markets
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Weaker demand for edible oils amid recession fears pushes palm oil prices lower, reducing the cost of vegetable oil substitutes for feed formulators.

## Read by commodity

- DXY: bullish ▲
- SBO: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2022-10-02 | 1 | -8.9% | -5.9 | Sept 28 palm futures fell 8.46% to a 1.5-year low on recession fears, a stronger dollar and long liquidation, which is a demand and sentiment shock of the same size as the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2022-07-01 | [Palm oil falls 4% on recession fears, higher supply outlook - Markets - Business Recorder](https://feedsoft.ai/events/6225-palm-oil-falls-4-on-recession-fears-higher-supply-outlook-markets-business.md) | -24.3% | -29.0% |
| PALMOIL | 2022-03-16 | [Palm extends losses - Markets - Business Recorder](https://feedsoft.ai/events/5497-palm-extends-losses-markets-business-recorder.md) | +1.1% | -4.2% |
| PALMOIL | 2020-02-28 | [Palm oil heads for worst week in 11 years on demand destruction \| The Star](https://feedsoft.ai/events/5815-palm-oil-heads-for-worst-week-in-11-years-on-demand-destruction-the-star.md) | -4.9% | -14.0% |
| PALMOIL | 2020-02-28 | [Asian palm oil market drops 5.7% on coronavirus fears \| S&P Global](https://feedsoft.ai/events/5814-asian-palm-oil-market-drops-5-7-on-coronavirus-fears-s-and-p-global.md) | -4.9% | -14.0% |
| PALMOIL | 2020-02-25 | [Crude palm oil futures hit 4-month low on uncertain market sentiment \| Malay Mail](https://feedsoft.ai/events/6573-crude-palm-oil-futures-hit-4-month-low-on-uncertain-market-sentiment-malay-mail.md) | -13.3% | -15.6% |
| SBO | 2022-07-01 | [Palm oil falls 4% on recession fears, higher supply outlook - Markets - Business Recorder](https://feedsoft.ai/events/6225-palm-oil-falls-4-on-recession-fears-higher-supply-outlook-markets-business.md) | -7.8% | -10.0% |
| SBO | 2022-03-16 | [Palm extends losses - Markets - Business Recorder](https://feedsoft.ai/events/5497-palm-extends-losses-markets-business-recorder.md) | +1.2% | +259.3% |
| SBO | 2020-03-10 | [Fear in the Market Drives Dow and Crude Oil Lower, Drags Ag Markets Along \| Hoosier Ag Today](https://feedsoft.ai/events/11271-fear-in-the-market-drives-dow-and-crude-oil-lower-drags-ag-markets-along.md) | -8.5% | -1.8% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40200157

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