According to the Commodity Market Analysis System of SunSirs, after the May Day holiday, the domestic palm oil market continued to weaken, with a decline of over 2%. On May 1st, the average market price of palm oil was 8,760 RMB/ton, and on May 7th, the average market price of palm oil was 8,584 RMB/ton, a decrease of 2.1% in price.

After May Day, the main producing country of Malaysian palm oil is still in a production increase cycle. According to data released by MPOA, Malaysian palm oil production increased by 24.62% month on month to 1.73 million tons in April. SPPOMA expects a month on month increase of 60.17% in production from May 1st to 5th. The bearish trend in the external market led to a volatile decline in the palm oil market. The domestic palm oil futures market followed suit and fell, while the palm oil spot market weakened and declined. As of May 7th, the average price of palm oil in the market has dropped to 8,500 RMB/ton, a decrease of 2% compared to before the holiday.

Futures: Since April, the overseas Malay palm oil futures market has fluctuated and fallen. After a significant decline in the domestic palm oil futures market, there were mixed ups and downs, with the market mainly oscillating widely. After May Day, the domestic palm oil futures market remained weak and mainly fell. As of May 7th, the main contract for palm oil received 7914 RMB/ton, a decrease of 70 RMB/ton. The futures market continues to weaken, while the palm oil spot market follows suit and is running weakly.

The palm oil analyst from SunSirs believes that in mid May, the weather will heat up and the demand for terminal oils will be sluggish. The external market will still be mainly bearish, and the palm oil market will continue to decline weakly in the future.

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