# Palm oil jumps 1% on expectations of tightening supplies - The Business Times

> Malaysian palm oil futures gained 1.1% on expectations of tighter supplies and strong biodiesel demand. Analysts had revised up their price outlooks after forecasting lower 2020 Malaysian output due to dry weather and fertiliser cuts. Haze from Indonesian forest fires may also have hurt palm fruit quality.

- Date: 2019-11-03 · published 2019-11-03T12:00:00.000Z
- Category: market · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/4287-palm-oil-jumps-1-on-expectations-of-tightening-supplies-the-business-times
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Lower output forecasts and biodiesel-driven demand point to a firmer vegetable oil market, which raises input costs for oil-based feed ingredients. Traders expect stocks to fall further over the next year.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2019-11-06 | 5 | +14.0% | 5.9 | Futures gained on expectations of tighter supply, strong biodiesel demand, dry weather, fertiliser cuts and haze, directly describing the rally drivers. |
| PALMOIL | 2019-11-04 | 5 | +13.0% | 6.4 | Expectations of tighter supply (dry weather, fertiliser cuts, haze) and strong biodiesel demand drove further gains and upward analyst revisions. |

## Sources

- businesstimes.com.sg: https://www.businesstimes.com.sg/companies-markets/energy-commodities/palm-oil-jumps-1-expectations-tightening-supplies

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