Negative Factors Weighing Down, Palm Oil Prices Weak and Declining

February 6th, News

According to monitoring data: In early February, the palm oil market in China fluctuated and fell. On February 1st, the average market price of palm oil was 9,196 CNY/ton, and on February 6th, the average market price of palm oil was 9,002 CNY/ton, a decrease of 2.11%.

Bearish pressure causes palm oil prices to fluctuate and decline in China.

In early February, overseas palm oil data from Malaysia were predominantly bullish, with declining production and robust exports. Specifically, from January 1 to 31, palm oil production in southern Malaysia fell by 13.08% month-on-month, while Malaysia’s palm oil export volume rose by between 14.9% and 17.9% month-on-month. Overall, the overseas Malaysian palm oil market performed relatively strongly. However, due to weak terminal demand for palm oil in China, the upward momentum of the overseas palm oil market was limited. Palm oil futures prices in China remained generally stable, while spot prices showed an overall weakening trend, with price declines exceeding 2%.

Palm oil analysts believe: After the holiday, the demand for edible oils in China will weaken, and inventory pressure will suppress the market. The palm oil market is expected to remain weak in the future.