# Palm oil heads for worst week in 11 years on demand destruction | The Star

> 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.

- Date: 2020-02-28 · published 2020-02-28T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/5815-palm-oil-heads-for-worst-week-in-11-years-on-demand-destruction-the-star
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

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.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2020-03-02 | 5 | -13.3% | -4.9 | 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. |
| PALMOIL | 2020-03-02 | 1 | -12.4% | -5.8 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2022-09-28 | [Palm hits lowest in over 1-1/2 years as recession fears dent demand - Markets - Business Recorder](https://feedsoft.ai/events/39674-palm-hits-lowest-in-over-1-1-2-years-as-recession-fears-dent-demand-markets.md) | -4.7% | +1.1% |
| PALMOIL | 2020-03-13 | [Crude oil sell-offs see prices for palm oil decline \| Analysis & Features \| The Grocer](https://feedsoft.ai/events/54237-crude-oil-sell-offs-see-prices-for-palm-oil-decline-analysis-and-features-the.md) | -2.8% | -3.9% |
| PALMOIL | 2025-04-07 | [Palm and soybean oil prices fell by 4.4-5.9% amid a 14.5% drop in oil prices in two days](https://feedsoft.ai/events/9630-palm-and-soybean-oil-prices-fell-by-4-4-5-9-amid-a-14-5-drop-in-oil-prices-in.md) | -2.5% | -6.2% |
| PALMOIL | 2025-04-07 | [Palm and Soy Oil Prices Drop as Oil Prices Decline](https://feedsoft.ai/events/9631-palm-and-soy-oil-prices-drop-as-oil-prices-decline.md) | -2.5% | -6.2% |
| PALMOIL | 2018-08-13 | [M'sian equities hit, ringgit lowest level in 10 months on Turkish troubles \| The Star](https://feedsoft.ai/events/63775-m-sian-equities-hit-ringgit-lowest-level-in-10-months-on-turkish-troubles-the.md) | -0.7% | -0.0% |
| WTI | 2022-07-05 | [Oil tumbles 9% on recession demand destruction fears](https://feedsoft.ai/events/12612-oil-tumbles-9-on-recession-demand-destruction-fears.md) | -3.9% | -12.8% |
| WTI | 2019-07-01 | [Oil Plunges in Worst Reaction to OPEC Since 2014 on Demand Woes - Bloomberg](https://feedsoft.ai/events/58299-oil-plunges-in-worst-reaction-to-opec-since-2014-on-demand-woes-bloomberg.md) | -1.4% | -2.5% |
| WTI | 2020-03-18 | [Oil falls 24% in 3rd worst day on record, sinks to more than 18-year low](https://feedsoft.ai/events/7659-oil-falls-24-in-3rd-worst-day-on-record-sinks-to-more-than-18-year-low.md) | -18.5% | -26.1% |

## Sources

- thestar.com.my: https://www.thestar.com.my/business/business-news/2020/02/28/palm-oil-heads-for-worst-week-in-11-years-on-demand-destruction

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