# Malaysian palm oil price slumps 3% on US soyoil losses and weak demand | The Star

> Malaysian palm oil futures fell nearly 4% on Thursday to their lowest in almost five months, closing down 3% at 2,032 ringgit a tonne. It was a fifth straight session of declines and the sharpest daily drop since mid-December. Weakness in U.S. soyoil on the Chicago Board of Trade and weak demand sentiment were cited as the causes.

- Date: 2019-05-02 · published 2019-05-02T12:00:00.000Z
- Category: market · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/6143-malaysian-palm-oil-price-slumps-3-on-us-soyoil-losses-and-weak-demand-the-star
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Lower soyoil prices pull palm oil values down through substitution pricing, which lowers the cost of vegetable oil inputs for feed formulators. The move is a sentiment-driven decline rather than a supply shock.

## Read by commodity

- SBO: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2019-05-05 | 5 | -9.0% | -4.8 | Palm futures fell about 3% on May 2 to a near five-month low on weak US soyoil and soft demand, the sharpest daily drop in the window. |
| PALMOIL | 2019-05-06 | 5 | -9.0% | -4.7 | The 3% drop to a five-month low on weak US soyoil and soft demand was the sharpest single-day fall in the window, driving much of the 5-day decline through spillover from competing vegetable oils and sentiment. |

## Sources

- thestar.com.my: https://www.thestar.com.my/business/business-news/2019/05/03/palm-oil-slumps-3-pct-on-us-soyoil-losses-and-weak-demand/

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