According to SunSirs monitoring: in September, palm oil experienced a short period of rest. After the Mid-Autumn Festival, boosted by the surge in crude oil, palm oil rose continuously for two days. As of September 17, the average domestic price of palm oil was RMB 5002/ton, up 3.85% from the pre-festival level.

On September 16, WTI crude oil futures rose sharply to $62.90 per barrel, an increase of $8.05. Brent crude oil futures rose sharply to $69.02 per barrel, an increase of $8.8. In particular, Brent crude oil, which opened on September 16, rose rapidly by more than 10%, surging by nearly 19% in the session, its highest level in nearly four months.

In recent years, the proportion of palm oil blending in Malay, Indonesia, European Union and other countries has gradually increased. Malay wants to implement the B20 plan in 2020, that is, 20% of the blending ratio. The surge in crude oil supported Malaysian palm oil futures prices. Domestic palm oil soared for two days, with the main palm oil contract closing at RMB 4884/ton on the 16th and the price rising by RMB 78/ton on the 16th, and the main palm oil contract closing at RMB 5016/ton on the 17th and the price rising by RMB 128/ton on the 17th. The spot price of palm oil in China has exceeded the RMB 5000 mark, with an increase of RMB 80-100/ton on that day.

SunSirs agricultural product analyst believes that international oil prices remain uncertain in the short term, and there are opportunities to rise. In addition, the USDA report in September downgraded the forecast of soybean production. The data are good for oil futures and more support. Palm oil prices are expected to continue to rise in the future.

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