Bullish and Bearish Forces Combine as Palm Oil Prices Fluctuate and Decline

September 23, News

According to the commodity market analysis system: starting from September 16th, the palm oil market in China has weakened and continued to fall. On September 16th, the average market price of palm oil was 9,516 CNY/ton, and by September 23rd, the average market price of palm oil had dropped to 8,972 CNY/ton, a decrease of 5.72%.

Negative factors weigh heavily, pushing palm oil prices steadily lower.

Since September 16th, the palm oil market has been fluctuating and declining. The support from Malaysian palm oil has been limited. Specifically, from September 1st to 20th, the yield of Malaysian palm oil decreased by 6.57% month-over-month and 7.89% year-over-year. Malaysian palm oil production has entered a seasonal reduction cycle, with an overall bullish trend. The external market for palm oil has seen mixed trends of increases and decreases. China's terminal demand for palm oil is sluggish, and the futures market for palm oil in China has significantly declined. On September 23rd, the main contract of palm oil futures closed at 9,054 CNY/ton, down 272 CNY/ton. The average spot price of palm oil has fallen below 9,000 CNY/ton, a decrease of more than 500 CNY/ton compared to September 16th.

Palm oil analysts believe that at the end of September, demand for edible oils in the market softened, while global palm oil prices remained volatile. Nevertheless, they expect palm oil prices to continue rising in the near term.