# Surge in Indonesia and Malaysia's palm oil prices may shrink sales to India

> Palm oil has rallied about 30% from its low, narrowing its discount to soybean oil to the smallest in almost a decade. Indian buyers are expected to shift some purchases to other edible oils this winter.

- Date: 2019-12-02 · published 2019-12-02T12:00:00.000Z
- Category: market · region India · magnitude medium
- Page: https://feedsoft.ai/events/55660-surge-in-indonesia-and-malaysia-s-palm-oil-prices-may-shrink-sales-to-india
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Higher palm prices are deterring India, the largest buyer, which could cut imports about 15% year on year and dent the rally. Demand destruction is a bearish risk for palm and a relative boost for soybean oil.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2019-12-06 | 5 | +8.2% | 3.2 | The 30% rally from the low narrowed palm's discount to soyoil, which confirms strong buying momentum even though it may curb Indian demand. |

## Sources

- theprint.in: https://theprint.in/economy/surge-in-indonesia-and-malaysias-palm-oil-prices-may-shrink-sales-to-india/329003/

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