# Palm oil futures hit limit down in Malaysia as recession fears mount

> Malaysian palm oil futures hit their limit down after falling 10%, and the price limit was widened from 10% to 15% for the afternoon session. Traders blamed recession fears and heavy crude palm oil selling from Indonesia, which had raised its export quota to seven times domestic sales.

- Date: 2022-07-06 · published 2022-07-06T12:00:00.000Z
- Category: policy · region Indonesia · magnitude high
- Page: https://feedsoft.ai/events/4988-palm-oil-futures-hit-limit-down-in-malaysia-as-recession-fears-mount
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Indonesia's larger export quota adds supply to world vegetable oil markets while recession fears cut demand, which pressures palm and related oils lower. The limit move signals a sharp, policy-linked decline that buyers should expect to persist near term.

## Read by commodity

- SBO: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2022-07-06 | 5 | -26.1% | -7.8 | Limit-down move on July 6 driven by recession fears and heavy Indonesian selling after the export quota was raised, hitting both demand sentiment and supply. |
| PALMOIL | 2022-07-05 | 5 | -26.0% | -9.8 | Limit-down 10% fall on July 6 driven by recession fears and heavy Indonesian CPO selling after the export quota was raised to seven times domestic sales. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2018-01-18 | [Indonesia, Malaysia condemn European move to limit palm oil use \| Reuters](https://feedsoft.ai/events/67074-indonesia-malaysia-condemn-european-move-to-limit-palm-oil-use-reuters.md) | +0.5% | -0.0% |
| PALMOIL | 2019-08-27 | [Palm oil: Indonesia and Malaysia push back as EU clamps down - Nikkei Asia](https://feedsoft.ai/events/57462-palm-oil-indonesia-and-malaysia-push-back-as-eu-clamps-down-nikkei-asia.md) | -1.2% | +0.3% |
| PALMOIL | 2017-04-12 | [Indonesia, Malaysia launch efforts to counter EU palm oil resolution](https://feedsoft.ai/events/71386-indonesia-malaysia-launch-efforts-to-counter-eu-palm-oil-resolution.md) | -2.5% | +1.6% |
| PALMOIL | 2019-09-06 | [India's duty hike blunts appetite for refined Malaysian palm oil \| Malaysiakini](https://feedsoft.ai/events/57179-india-s-duty-hike-blunts-appetite-for-refined-malaysian-palm-oil-malaysiakini.md) | +0.8% | -1.9% |
| PALMOIL | 2025-08-20 | [Malaysia and Indonesia move to be labeled “low-risk” for palm oil.](https://feedsoft.ai/events/23345-malaysia-and-indonesia-move-to-be-labeled-low-risk-for-palm-oil.md) | -0.2% | +1.7% |
| SBO | 2025-05-27 | [Soybean Oil Futures Hit Limit Down On RVO Speculation \| Bricsgrain](https://feedsoft.ai/events/24779-soybean-oil-futures-hit-limit-down-on-rvo-speculation-bricsgrain.md) | -5.4% | +2.9% |
| SBO | 2022-04-01 | [Palm falls 3pc as India extends stock limit - Markets - Business Recorder](https://feedsoft.ai/events/5914-palm-falls-3pc-as-india-extends-stock-limit-markets-business-recorder.md) | +271.3% | +288.9% |
| SBO | 2018-02-13 | [Minister: Malaysia will retaliate against EU goods in case of palm oil ban](https://feedsoft.ai/events/66372-minister-malaysia-will-retaliate-against-eu-goods-in-case-of-palm-oil-ban.md) | +0.0% | +0.5% |

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/070622-palm-oil-futures-hit-limit-down-in-malaysia-as-recession-fears-mount
- spglobal.com: https://www.spglobal.com/energy/en/news-research/latest-news/agriculture/070622-palm-oil-futures-hit-limit-down-in-malaysia-as-recession-fears-mount

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