Palm Oil Market Strengthens in March

March 25th, news:

According to the commodity market analysis system: In March, the palm oil market strengthened, with prices oscillating upwards, increasing by over 7%. At the beginning of the month, the average market price for palm oil in China was 8,740 CNY/ton. By March 25, the average market price for palm oil in China had risen to 9,420 CNY/ton, an increase of 7.78%.

The main factors influencing the March palm oil market are as follows:

Supply side: From March 1 to 15, palm oil production in southern Malaysia decreased by 5.28% month-on-month. From March 1 to 20, Malaysia’s palm oil export volume increased by between 38.1% and 49.6% month-on-month. The main producing region, Malaysia, remains in a period of reduced production, while exports remain strong, providing predominantly positive support.

Futures: The rise in the external market's Malaysian palm oil prices has supported an increase in China's palm oil spot market. As of March 25, the main contract for palm oil on the Dalian Commodity Exchange closed at 9,510 CNY/ton, a single-day decrease of 168 CNY/ton, but still up 5.73% from early March. The futures market's performance has boosted China's palm oil spot market.

Demand side: Since March, primary, secondary, and higher education institutions have resumed classes in a concentrated manner. Terminal demand for oils and fats remains reasonably strong, and trading volume of palm oil in the market has increased, providing solid demand support and driving continued upward momentum in palm oil prices.

Palm oil analysts believe: In April, the bullish trend in the foreign market will continue, and palm oil prices in China will remain at high levels.