According to the Commodity Market Analysis System of SunSirs, the palm oil market weakened in February, with price fluctuations and a decline of over 5%. At the beginning of the month, the average market price of palm oil was 9,196 RMB/ton. On February 27th, the average market price of palm oil was 8,800 RMB/ton, a decrease of 5.76%.
The main factors affecting the palm oil market in February are as follows:
Supply side: From February 1st to 20th, 2026, Malaysia's palm oil production decreased by 12.29% month on month. The export volume of palm oil from Malaysia was 863,358 tons, a decrease of 8.92% compared to the same period in January when it was 947,939 tons. Malaysia, the main production area, is still in a production reduction cycle. Among them, palm oil production in January decreased by more than 12% month on month, and export data also declined. The combination of long and short positions has limited support for the palm oil market.
Futures: The Malaysian palm oil market weakened in the external market, providing moderate support for the domestic palm oil futures market. As of February 27th, the main contract for palm oil has closed at 8,780 RMB/ton, with a daily increase of 10 RMB/ton and a decrease of 2.58% compared to early February. The futures market is suppressing, and the domestic palm oil spot market is also falling.
On the demand side: As the Spring Festival approaches, the terminal oil stocking market has started, and merchants' enthusiasm for purchasing palm oil remains undiminished. The rigid demand has increased, and the palm oil market has seen an increase in sales volume and a rebound in transactions. After the holiday, the rigid demand for palm oil declined, dominated by negative factors, and the domestic palm oil market gradually experienced a pullback, with market fluctuations and mainly falling.
The palm oil analyst from SunSirs believes that in March, the rigid demand for terminal oils and fats will increase, and the palm oil market may usher in an upward trend.
SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.
