Negative pressure and slight decline in the Chinese palm oil market

In early February, the domestic palm oil market experienced price fluctuations and declines. On February 1, the average market price of palm oil was 9,196 yuan/tonne, while on February 6, it was 9,002 yuan/tonne, representing a decline of 2.11%.

In early February, external data for Malaysian palm oil was largely positive, with production declining and exports strong. Specifically, from January 1 to 31, palm oil production in South Malaysia decreased by 13.08% month-on-month, while Malaysian palm oil exports increased by 14.9% to 17.9% month-on-month. Overall, the Malaysian palm oil market’s performance in the external market is relatively strong. Due to weak domestic demand for palm oil, the stimulus from the overseas market is limited. The domestic palm oil futures market is at average levels, while the spot market is generally weak, down more than 2%.

SunSirs analysts specializing in palm oil believe that after the holidays, demand for oil will weaken, inventory pressure will ease, and the palm oil market will continue to operate in a weak state going forward.

Tags: China, prices, palm oil