Bulls and Bears Intertwined: Palm Oil Prices Weaken in February

February 27 News

According to the commodity market analysis system: In February, the palm oil market in China weakened, with prices oscillating downward, decreasing by more than 5%. At the beginning of the month, the average market price of palm oil was 9,196 CNY/ton. By February 27th, the average market price of palm oil had dropped to 8,800 CNY/ton, a decline of 5.76%.

The main factors affecting the palm oil market in February are as follows:

Supply Side: From February 1 to 20, 2026, Malaysia’s palm oil production decreased by 12.29% month-on-month. Malaysia’s palm oil export volume reached 863,358 tons, a decrease of 8.92% from 947,939 tons in the same period last January. The main producing region, Malaysia, remains in a phase of reduced production; in January, palm oil output fell by more than 12% month-on-month, and export figures also declined. With bullish and bearish factors intertwined, the boost to palm oil prices remains limited.

Futures Market: The external market for Malaysian palm oil has weakened, providing only moderate support to China's palm oil futures. As of February 27, the main contract for palm oil on the Dalian Commodity Exchange closed at 8,780 CNY/ton, up 10 CNY/ton from the previous day, but down 2.58% from early February. The decline in futures prices has led to a corresponding drop in the spot market for palm oil in China.

Demand Side: As the Spring Festival approaches, end-users are starting to stock up on oils and fats, and traders remain enthusiastic about purchasing palm oil. With rigid demand on the rise, palm oil sales volumes have increased, and transactions are picking up again. However, after the festival, rigid demand for palm oil has declined, giving rise to bearish factors. Consequently, China’s palm oil market is gradually experiencing a pullback, with prices mainly fluctuating and trending downward.

Palm oil analysts believe: In March, with the increase in rigid demand for terminal oils and fats, the palm oil market in China may see a rise.