# Palm oil firms face challenges on weak prices, sustainability, says Fitch Solutions | The Star

> Fitch Solutions expects palm oil companies to face slowing revenue and margins in FY2018-19 as prices stay weak, forecasting 2018 crude palm oil averaging RM2,340 a tonne versus RM2,704 in 2017. It flagged rising El Niño risk and dry weather in Indonesia that could hurt 2019 output.

- Date: 2018-10-09 · published 2018-10-09T12:00:00.000Z
- Category: weather · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/62639-palm-oil-firms-face-challenges-on-weak-prices-sustainability-says-fitch
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Fitch's weak price outlook and El Niño risk point to ample near-term palm supply, while dryness in Indonesia could tighten vegetable oil supply into 2019.

## Read by commodity

- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2017-08-16 | [Bumper crops weighing on palm oil prices in Southeast Asia - Nikkei Asia](https://feedsoft.ai/events/69557-bumper-crops-weighing-on-palm-oil-prices-in-southeast-asia-nikkei-asia.md) | +1.6% | +10.0% |
| PALMOIL | 2024-07-31 | [Falling soybean oil prices weigh on other vegetable oil markets](https://feedsoft.ai/events/29357-falling-soybean-oil-prices-weigh-on-other-vegetable-oil-markets.md) | -1.9% | +1.5% |
| PALMOIL | 2016-11-29 | [Fitch: Further CPO price rise to be constrained, despite rising biodiesel demand \| The Star](https://feedsoft.ai/events/10933-fitch-further-cpo-price-rise-to-be-constrained-despite-rising-biodiesel-demand.md) | +5.3% | +4.6% |
| PALMOIL | 2017-03-09 | [Palm Oil Prices to Drop as Production Rebounds, Demand Slows](https://feedsoft.ai/events/72110-palm-oil-prices-to-drop-as-production-rebounds-demand-slows.md) | -1.8% | -5.3% |
| PALMOIL | 2016-12-29 | [Palm oil meeting in Bali to focus on weather \| The ASEAN Post](https://feedsoft.ai/events/73573-palm-oil-meeting-in-bali-to-focus-on-weather-the-asean-post.md) | -1.2% | -0.1% |

## Sources

- thestar.com.my: https://www.thestar.com.my/business/business-news/2018/10/10/palm-oil-firms-face-challenges-on-weak-prices-sustainability-says-fitch/

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