# Palm Oil Prices to Decline Further

> Fitch Ratings expects higher global vegetable oil output to push crude palm oil below USD1,000 a tonne in the second half of 2022, from an average near USD1,500 in the first half. Prices have already fallen over USD300 a tonne since early June after Indonesia cut export levies. Fitch says a reinstated Indonesian export curb or lower Ukrainian sunflower oil supply are the main upside risks.

- Date: 2022-06-28 · published 2022-06-28T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6224-palm-oil-prices-to-decline-further
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Expanding vegetable oil output and Indonesian export incentives point to a sustained supply surplus that weighs on palm prices. Reinstated export curbs would reverse this, which makes policy the key swing factor.

## Read by commodity

- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2022-06-30 | 1 | -15.2% | -9.2 | Fitch's forecast of CPO falling below USD1,000 on higher vegetable oil output reinforced bearish sentiment just before the drop. |

## Sources

- fitchratings.com: https://www.fitchratings.com/research/corporate-finance/palm-oil-prices-to-decline-further-28-06-2022

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