October Palm Oil Market Fluctuates and Falls

October 29th, according to reports

According to the commodity market analysis system: In October, the palm oil market in China weakened, steadily declining, with a price decrease of over 3%. On October 1st, the average market price of palm oil was 9,226 CNY/ton, and by October 29th, the average market price of palm oil had dropped to 8,807 CNY/ton, a decline of 3.86%.

Bearish pressure leads to a fluctuating and declining trend in palm oil prices in China in October.

After the holiday, palm oil opened with a significant increase, with an opening price of 9,452 CNY/ton and a closing price of 9,570 CNY/ton, up 3.05% from September 30. The futures market boosted the spot market for palm oil in China, with the market average price rising to 9,600 CNY/ton, a single-day price increase of over 300 CNY/ton.

Mid-month, the palm oil market in China gradually weakened, with prices mainly fluctuating downward, decreasing by over 3%. The main reason was that Malaysian palm oil production was in a growth phase, with production in southern Malaysia increasing by 2.71% month-over-month from October 1-20. Negative external factors led to a decline in palm oil futures, and the spot market followed, with prices falling by nearly 300 CNY/ton. By October 23, the average market price of palm oil had dropped to around 9,000 CNY/ton.

At the end of the month, Malaysian palm oil production is expected to rise, while global palm oil prices declined. Meanwhile, China's palm oil futures market also fell, prompting spot prices to follow suit—with the price decrease widening further. As of October 29, the average market price of palm oil dropped to 8,870 CNY per ton, marking a decline of approximately 400 CNY per ton compared to the beginning of the month.

Palm oil analysts believe that in November, supported by the rigid demand for terminal oils and fats in China, and with external market positives still present, the palm oil market may stop falling and start to rise.