# Palm falls on likely higher output, lower demand - Markets - Business Recorder

> Malaysian palm oil futures fell 85 ringgit (1.7%) to 4,904 ringgit a tonne on expectations of higher production and weaker demand. The decline followed Indonesia's plan to offer larger export quotas to its palm oil companies. Indonesia's return to the export market after a recent halt has disrupted Malaysian demand.

- Date: 2022-06-29 · published 2022-06-29T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/6219-palm-falls-on-likely-higher-output-lower-demand-markets-business-recorder
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Larger Indonesian export quotas and rising output add supply to a market where export demand is already weakening, pressuring palm prices lower. Soyoil and palm are substitutes in vegetable oils, so softer palm can weigh on related edible oil prices.

## Read by commodity

- SBO: neutral
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2022-06-30 | 1 | -15.2% | -9.2 | Palm fell on expectations of higher output and weaker demand after Indonesia planned larger export quotas, signalling supply returning to the export market. |
| PALMOIL | 2022-07-05 | 5 | -26.0% | -9.8 | Larger Indonesian export quotas and weaker demand pushed futures lower, with Malaysian demand disrupted. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2021-06-08 | [Palm falls for second day on forecasts of higher output, stockpiles - Markets - Business Recorder](https://feedsoft.ai/events/10809-palm-falls-for-second-day-on-forecasts-of-higher-output-stockpiles-markets.md) | -11.7% | -7.3% |
| PALMOIL | 2021-02-02 | [Palm oil falls nearly 2% on weak Jan exports, higher Indian tax - Markets - Business Recorder](https://feedsoft.ai/events/48724-palm-oil-falls-nearly-2-on-weak-jan-exports-higher-indian-tax-markets-business.md) | -3.3% | +4.3% |
| PALMOIL | 2025-01-02 | [Palm oil ends lower after news on Indonesia’s B40 delay - Markets - Business Recorder](https://feedsoft.ai/events/5046-palm-oil-ends-lower-after-news-on-indonesia-s-b40-delay-markets-business.md) | -10.6% | -10.3% |
| PALMOIL | 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) | -8.9% | -1.8% |
| PALMOIL | 2021-06-14 | [Palm extends fall to hit over 4-month low on cheaper US soyoil - Markets - Business Recorder](https://feedsoft.ai/events/10807-palm-extends-fall-to-hit-over-4-month-low-on-cheaper-us-soyoil-markets-business.md) | -3.6% | +0.1% |
| SBO | 2024-10-01 | [Palm bounces back on Indonesia’s October reference price hike - Markets - Business Recorder](https://feedsoft.ai/events/7238-palm-bounces-back-on-indonesia-s-october-reference-price-hike-markets-business.md) | +1.5% | +2.7% |
| SBO | 2021-08-27 | [Indonesia Sept crude palm oil export reference price, export tax set higher - Markets - Business Recorder](https://feedsoft.ai/events/45440-indonesia-sept-crude-palm-oil-export-reference-price-export-tax-set-higher.md) | -1.8% | -4.6% |
| SBO | 2022-09-15 | [Palm dips as stocks rise, Malaysia raises effective export tax - Markets - Business Recorder](https://feedsoft.ai/events/15789-palm-dips-as-stocks-rise-malaysia-raises-effective-export-tax-markets-business.md) | -4.8% | -5.8% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40183286
- brecorder.com: https://www.brecorder.com/news/40183393

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