# Palm oil falls as traders weigh weakening demand

> Palm oil futures for August fell 1.1% to RM4,240 a tonne, the lowest since May 11, after the market reopened from the Aidilfitri holiday. Traders cited weakening demand from India, the top buyer, where lockdowns to fight a Covid-19 outbreak have closed restaurants that use palm oil. Some traders also took profits on long positions held before the holiday.

- Date: 2021-05-18 · published 2021-05-18T12:00:00.000Z
- Category: trade · region India · magnitude low
- Page: https://feedsoft.ai/events/47188-palm-oil-falls-as-traders-weigh-weakening-demand
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Lockdown-driven loss of restaurant demand in India weighs on palm oil, which is used mainly in food service, and shifts Indian buying toward sunflower and soybean oil. Lower near-term demand points to softer palm oil prices, although strong soyoil prices offer some support.

## Read by commodity

- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2020-05-01 | [Palm oil market to miss out on traditionally high Ramadan demand…](https://feedsoft.ai/events/11553-palm-oil-market-to-miss-out-on-traditionally-high-ramadan-demand.md) | -10.4% | -3.7% |
| PALMOIL | 2019-08-02 | [VEGOILS-Palm edges down tracking weaker overnight soyoil](https://feedsoft.ai/events/6472-vegoils-palm-edges-down-tracking-weaker-overnight-soyoil.md) | +2.0% | +4.5% |
| PALMOIL | 2018-04-30 | [Vegoils: Palm falls to two-week low on weaker exports](https://feedsoft.ai/events/6614-vegoils-palm-falls-to-two-week-low-on-weaker-exports.md) | -4.5% | -1.8% |
| PALMOIL | 2021-05-31 | [Palm oil falls 2pc as export pace slows, Indonesia taxes weigh - Markets - Business Recorder](https://feedsoft.ai/events/46982-palm-oil-falls-2pc-as-export-pace-slows-indonesia-taxes-weigh-markets-business.md) | -2.0% | -12.6% |
| PALMOIL | 2017-05-24 | [Chinese demand for palm oil set to drop \| The Star](https://feedsoft.ai/events/71094-chinese-demand-for-palm-oil-set-to-drop-the-star.md) | -0.7% | -4.8% |

## Sources

- themalaysianreserve.com: https://themalaysianreserve.com/2021/05/18/palm-oil-falls-as-traders-weigh-weakening-demand/

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