# Palm oil demand up as dry U.S. weather seen hurting rival soy crops

> Palm oil demand is rising because dry US weather is hurting soybean crops and widening the price spread between palm and soyoil. Buyers in China and Europe are switching to the cheaper palm oil, and China is restocking port inventories that have fallen to seven-month lows. Palm prices are down about 17% so far this year and are expected to ease in the second half as seasonal output rises.

- Date: 2017-07-21 · published 2017-07-21T12:00:00.000Z
- Category: weather · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/70055-palm-oil-demand-up-as-dry-u-s-weather-seen-hurting-rival-soy-crops
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

US dry weather cutting soy output and a wider palm-soyoil spread shift demand toward palm, supporting palm prices in the near term. Expected seasonal production gains in the second half are a bearish offset.

## Read by commodity

- SBO: bullish ▲
- SOY: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2023-12-01 | [Dry Weather in Key Crop Shipper Brazil Has Farmers Ripping Up Crops](https://feedsoft.ai/events/13609-dry-weather-in-key-crop-shipper-brazil-has-farmers-ripping-up-crops.md) | -2.3% | -3.7% |
| SOY | 2019-09-12 | [Column: Brazil's upcoming soy, corn crops at risk amid historically dry weather \| Reuters](https://feedsoft.ai/events/56901-column-brazil-s-upcoming-soy-corn-crops-at-risk-amid-historically-dry-weather.md) | +4.1% | +8.2% |
| SOY | 2024-08-26 | [Hot and Dry Weather Forecast for Central Brazil's Planting Season](https://feedsoft.ai/events/13550-hot-and-dry-weather-forecast-for-central-brazil-s-planting-season.md) | +3.2% | +9.2% |
| SOY | 2020-08-26 | [Soybeans up on weather, demand from China - Brownfield Ag News](https://feedsoft.ai/events/51480-soybeans-up-on-weather-demand-from-china-brownfield-ag-news.md) | +4.5% | +11.0% |
| SOY | 2021-12-16 | [Featured \| Dry weather affects Rio Grande do Sul's crop](https://feedsoft.ai/events/13756-featured-dry-weather-affects-rio-grande-do-sul-s-crop.md) | +5.2% | +8.1% |
| PALMOIL | 2022-10-21 | [Palm oil prices seen ticking up as rains slash output and demand strengthens \| Reuters](https://feedsoft.ai/events/15781-palm-oil-prices-seen-ticking-up-as-rains-slash-output-and-demand-strengthens.md) | +0.3% | +6.3% |
| PALMOIL | 2026-10-08 | [Palm Oil Traders Eye Price Rally as Weather and Policy Risks Tighten Supply Outlook](https://feedsoft.ai/events/17176-palm-oil-traders-eye-price-rally-as-weather-and-policy-risks-tighten-supply.md) | +0.5% | -0.2% |
| PALMOIL | 2026-06-04 | [Hot weather hurts Asian crops as powerful El Nino takes shape \| Reuters](https://feedsoft.ai/events/18728-hot-weather-hurts-asian-crops-as-powerful-el-nino-takes-shape-reuters.md) | -4.4% | -6.1% |

## Sources

- businessamlive.com: https://businessamlive.com/palm-oil-demand-dry-u-s-weather-seen-hurting-rival-soy-crops/
- reuters.com: https://www.reuters.com/article/us-malaysia-palmoil-idUSKBN1A6124/

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