Bullish and Bearish Forces Overlapping, Palm Oil Prices Fluctuate and Rise

January 20 news

According to monitoring data: After New Year's Day, the palm oil market in China fluctuated and rose. At the beginning of the month, the average market price of palm oil was 8,564 CNY/ton. On January 20th, the average market price of palm oil was 8,724 CNY/ton, with a price increase of 1.87%.

Bullish and bearish forces are intertwined, causing palm oil prices to fluctuate and rise.

After the New Year, Malaysia’s palm oil exports have increased. According to AmSpec, an independent Malaysian inspection agency, Malaysia’s palm oil export volume from January 1 to 20 reached 892,428 tons, up 8.64% from the 821,442 tons exported during the same period last month. Coupled with rising inventory levels, Malaysia’s palm oil stocks at the end of December increased by 7.58% compared to the previous month. With both bullish and bearish factors overlapping, overseas palm oil prices in the global market have shown mixed trends. In China, palm oil futures have mainly been fluctuating in tandem with the broader market. China’s palm oil inventories remain high—at around 750,000 tons, up more than 1% from the previous month—and terminal demand has been moderate. As a result, spot palm oil prices have risen, with price increases approaching 2%.

Palm oil analysts believe: the rigid demand from end-users is generally weak, and inventory pressure still exists, putting pressure on the future rise of palm oil prices in China.