# Malaysia bets instant noodles will sustain palm oil demand in virus-hit China

> Brokers and traders forecast palm oil prices could fall in coming weeks if the coronavirus continues disrupting travel and leads to wider shutdowns of offices, malls and factories. Malaysia is counting on instant noodle production to support palm oil demand in China.

- Date: 2020-02-04 · published 2020-02-04T12:00:00.000Z
- Category: disease · region China · magnitude medium
- Page: https://feedsoft.ai/events/4954-malaysia-bets-instant-noodles-will-sustain-palm-oil-demand-in-virus-hit-china
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

A shutdown-driven drop in food-service demand would weaken palm oil consumption, while stronger packaged-food output could partly offset it. The net effect points to downward pressure on palm prices.

## Read by commodity

- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2020-02-03 | 5 | -12.8% | -4.9 | Traders expected further price declines if coronavirus shutdowns spread in China, reinforcing bearish demand sentiment, though noodle demand offers partial support. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2020-05-12 | [Palm oil players warn of tougher times as pandemic hits prices \| Malaysiakini](https://feedsoft.ai/events/53239-palm-oil-players-warn-of-tougher-times-as-pandemic-hits-prices-malaysiakini.md) | +2.4% | +19.1% |
| PALMOIL | 2020-02-19 | [Palm oil extends losses on weak demand  - The HinduBusinessLine](https://feedsoft.ai/events/10641-palm-oil-extends-losses-on-weak-demand-the-hindubusinessline.md) | -2.4% | -16.6% |
| PALMOIL | 2020-03-30 | [NCP affects vegetable oil consumption and livestock production, and new changes appear in vegetable oil and meal markets - China Oil and Oilseeds Report - CnAgri-China Agriculture Consultant](https://feedsoft.ai/events/54211-ncp-affects-vegetable-oil-consumption-and-livestock-production-and-new-changes.md) | -5.8% | -7.7% |
| PALMOIL | 2020-02-05 | [Coronavirus drags down commodity prices as demand from China drops - Business - The Jakarta Post](https://feedsoft.ai/events/4957-coronavirus-drags-down-commodity-prices-as-demand-from-china-drops-business-the.md) | +1.3% | -8.5% |
| PALMOIL | 2020-02-05 | [Temporary drop on local palm oil prices due to coronavirus](https://feedsoft.ai/events/4960-temporary-drop-on-local-palm-oil-prices-due-to-coronavirus.md) | +1.3% | -8.5% |

## Sources

- reuters.com: https://www.reuters.com/article/us-china-health-palmoil-malaysia/malaysia-bets-instant-noodles-will-sustain-palm-oil-demand-in-virus-hit-china-idUSKBN1ZY0L9/

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