SunSirs: China Palm Oil Market weakly Oscillates in May

According to the Commodity Market Analysis System of SunSirs, the domestic palm oil market fluctuated weakly in May, with an overall decline of over 2%. On May 1st, the average market price of palm oil was 8,760 RMB/ton, and on May 28th, the average market price of palm oil was 8,572 RMB/ton, a decrease of 2.15%.

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.

In the middle of the month, the external market was mainly bearish, and the palm oil market declined. The domestic palm oil futures market followed suit and fell, while the palm oil spot market showed weak upward momentum. As of May 19th, the average price of palm oil in the market has dropped to 8,502 RMB/ton, a decrease of about 100 RMB/ton compared to the beginning of the month.

At the end of the month, as the weather warms up, the substitution effect of palm oil increases, and the spot market fluctuates, with an overall downward trend. As of May 28th, the average price of palm oil in the market has dropped to 8,572 RMB/ton, a decrease of nearly 200 RMB/ton compared to the beginning of the month.

The palm oil analyst from SunSirs believes that in June, the demand for terminal oils and fats weakened, and the bearish trend in the external market remained. The palm oil market will continue to decline weakly in the future.

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