Palm Oil Market in December Experiences Volatile Decline

December 29 news

According to the commodity market analysis system: In December, the palm oil market in China was mainly characterized by a weak and fluctuating trend, with an overall decline, and the price decrease was close to 2%. On December 1st, the average market price of palm oil was 8,690 CNY/ton, and on December 29th, it was 8,530 CNY/ton, a drop of 1.84%.

Bull-Bear Duel: Palm Oil Prices Weaken and Decline in December

Since December, China’s palm oil market has generally continued to fluctuate and decline. The average market price has fallen steadily from 8,700 CNY per ton to around 8,300 CNY per ton, with the largest price decrease exceeding 4%. At the end of the month, supported by positive factors, prices began to rebound gradually. However, given the substantial previous price decline, the subsequent rebound has only brought prices back to around 8,500 CNY per ton—far short of the magnitude of the earlier decline—and overall, the market remains on a downward trend.

The main factors influencing the rise and fall of palm oil prices in December are as follows: Positive factors: Malaysian palm oil production on the international market is in a period of declining output. Specifically, from December 1 to 25, 2025, palm oil production in southern Malaysia decreased by 9.12% month-on-month. As supply tightens, futures prices have been boosted.

Negative factors: China's palm oil port inventory remains persistently high, hovering around 750,000 tons. Terminal demand for palm oil is generally rigid, and market trading volumes have declined.

Palm oil analysts believe that as the end of the year approaches, the demand for edible oils during the holidays will increase, and the palm oil market in China will continue to rise in January, with prices mainly trending upwards.