Palm oil prices remain strong

Malaysian palm oil futures prices

Recently, the domestic palm oil market price has been strong, but the domestic demand is still weak. As the price of palm oil has exceeded the price of soybean oil, the domestic downstream market of palm oil has limited transactions except for the purchase of fresh demand. Generally speaking, the domestic palm oil market continues to run flat in the short term.

Production is recovering in Malaysia, where it has picked up in recent months, as well as in places like Indonesia, but inventories remain low.

Indonesia production trend was basically stable situation in September, but the early stage of the production, there are still some gap Indonesia's production is still rise space, so inventory after India sharply procurement in Indonesia after stocks fell slowly began to rebound, but inventories are not more than 4 million tons in September, below inventory levels in the normal inventory levels.

Production in Malaysia, Indonesia and other regions is basically in the production recovery stage, so there is some short-term support for palm oil prices, so it is understandable that palm oil prices outside the quotations quotations run, and domestic palm oil stocks are still low, there is some support for domestic palm oil market prices.

Compared with the previous data, India's festival season from December has basically ended. According to the previous data, India did not purchase in large quantities in December. Therefore, according to the current situation, the support from India's demand will weaken the price support in the later period.

As the domestic palm oil disk price has suppressed the price of soybean oil, leading to low acceptance of palm oil in the downstream. Therefore, the demand direction of the downstream has basically changed, and soybean oil is the main alternative. Therefore, the domestic palm oil demand performance is mediocre, and the overall market is weak.

Chinese futures close and spot prices

In general, the overall performance of the domestic palm oil market continues to be weak, and the atmosphere of the domestic palm oil market will not change significantly under the premise of no significant improvement in domestic demand. At present, we need to pay attention to two points. First, the stock status of foreign countries. It is reported that Malaysia will have an increase in the stock during the regular production cut season in November, which will obviously exert a greater pressure on the price of palm oil. On the other hand, customers in the market need to pay attention to the forward buying price of CNF. After the forward buying price drops, the later trend is basically determined.

Therefore, the short-term performance of the domestic palm oil market may be more volatile, and the market lacks reliable fundamental information to indicate the future operation direction. Therefore, the short-term market is highly volatile and risky, and it is recommended to operate cautiously in the short term.