# Palm oil futures plummet to 8-month low amid vegetable oils sell-off

> Malaysian benchmark palm oil futures fell about 3% to their lowest since October 2022 on May 31, 2023, with the August contract at MR3,281/mt. Dalian palm and soyoil contracts also dropped sharply. Analysts blamed weaker crude oil, Black Sea sunflower oil weakness and soybean oil pressure.

- Date: 2023-05-31 · published 2023-05-31T12:00:00.000Z
- Category: market · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/7318-palm-oil-futures-plummet-to-8-month-low-amid-vegetable-oils-sell-off
- 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), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Broad vegetable oil weakness lowers the cost of palm and soy oil inputs, feeding into cheaper oilmeal and feed fat alternatives for buyers. Bearish momentum across the oilseed complex points to continued softness in near-term prices.

## Read by commodity

- SBO: bearish ▼
- WTI: bearish ▼
- BRENT: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2023-05-31 | 1 | -8.4% | -4.5 | Explains the May 31 slide to an 8-month low through weaker crude oil, Black Sea sunflower oil and soyoil pressure (substitute-oil and input-cost sentiment). |
| PALMOIL | 2023-06-01 | 1 | -8.4% | -4.3 | The vegetable oils sell-off, with weaker crude oil, sunflower oil and soyoil, pushed palm to an 8-month low on May 31 and added substitution and sentiment pressure. |

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/053123-palm-oil-futures-plummet-to-8-month-low-amid-vegetable-oils-sell-off

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