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Palm oil futures were heading for their worst week in 11 years, down more than 12% so far that week and about 27% below the January peak. The decline was attributed to slumping crude oil prices, weaker Malaysian exports and concern about the coronavirus spreading.
Lower crude prices reduce palm oil's appeal as a biofuel feedstock, and weaker export demand adds to downward pressure on prices. Feed buyers can expect cheaper vegetable oil inputs, while the bear market signals weaker demand expectations.
thestar.com.myThe Star OnlineFeb 28, 2020After 51 past bearish macro events, Palm Oil moved a median -1.3% over 5 sessions (35% higher; middle half -4.1% to +1.1%), and -1.8% over 20.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
After 312 past bearish macro events, Crude Oil (Brent) moved a median -1.7% over 5 sessions (38% higher; middle half -5.4% to +2.3%), and -1.7% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Describes the worst weekly fall in 11 years, driven by weak crude oil, weaker Malaysian exports and virus concerns, which matches the window and the size of the move.
Worst weekly decline in 11 years driven by crude oil slump, weak exports and virus fears points to demand-destruction and forced liquidation that likely extended into Mar 2.
