# Palm oil falls 4% on recession fears, higher supply outlook - Markets - Business Recorder

> Malaysian palm oil futures fell 4.2% to 4,703 ringgit a tonne on recession fears that hit edible oils, after an intraday drop of about 7%. Malaysia's June exports fell between 7.4% and 13.4% from May as shipments to India and the EU slowed. Palm later recovered some losses when crude oil rose on supply outages in Libya and Norway.

- Date: 2022-07-01 · published 2022-07-01T12:00:00.000Z
- Category: macro · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/6225-palm-oil-falls-4-on-recession-fears-higher-supply-outlook-markets-business
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Recession fears reduce demand for edible oils and biodiesel, while weaker Malaysian exports add to the supply overhang. Stronger crude oil could support palm by making it more competitive as biodiesel feedstock.

## Read by commodity

- SBO: bearish ▼
- WTI: bullish ▲
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2022-07-05 | 5 | -26.0% | -9.8 | 4% drop on July 1 on recession fears and a higher supply outlook, with weaker June exports to India and the EU. |
| PALMOIL | 2022-06-30 | 1 | -15.2% | -9.2 | Recession fears hit edible oils with an intraday drop of ~7%, alongside weaker June Malaysian exports and a higher supply outlook, matching the window's sharp selloff. |
| SBO | 2022-07-04 | 1 | -7.1% | -5.2 | July 1 recession fears and a higher supply outlook hit edible oils, setting up the weak sentiment that carried into the July 4 soyoil drop. |
| PALMOIL | 2022-07-04 | 1 | -10.5% | -3.9 | Recession fears and weaker June Malaysian exports hit edible oils just before the move, adding demand-side and sentiment pressure. |

## 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 | 2022-03-16 | [Palm extends losses - Markets - Business Recorder](https://feedsoft.ai/events/5497-palm-extends-losses-markets-business-recorder.md) | +1.1% | -4.2% |
| PALMOIL | 2020-02-28 | [Asian palm oil market drops 5.7% on coronavirus fears \| S&P Global](https://feedsoft.ai/events/5814-asian-palm-oil-market-drops-5-7-on-coronavirus-fears-s-and-p-global.md) | -4.9% | -14.0% |
| PALMOIL | 2026-02-04 | [Palm oil prices on roller coaster amid bullish outlook but soft fundamentals \| Mysteel](https://feedsoft.ai/events/4665-palm-oil-prices-on-roller-coaster-amid-bullish-outlook-but-soft-fundamentals.md) | -1.6% | -0.6% |
| PALMOIL | 2021-08-19 | [Falling oil prices increase pressure on oilseed markets](https://feedsoft.ai/events/11363-falling-oil-prices-increase-pressure-on-oilseed-markets.md) | +0.3% | +2.3% |
| SBO | 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) | +2.6% | +9.3% |
| SBO | 2022-03-16 | [Palm extends losses - Markets - Business Recorder](https://feedsoft.ai/events/5497-palm-extends-losses-markets-business-recorder.md) | +1.2% | +259.3% |
| SBO | 2020-02-28 | [Asian palm oil market drops 5.7% on coronavirus fears \| S&P Global](https://feedsoft.ai/events/5814-asian-palm-oil-market-drops-5-7-on-coronavirus-fears-s-and-p-global.md) | +0.9% | -8.1% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40183789

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