SunSirs: China Palm Oil Market Fluctuated in June

According to the Commodity Market Analysis System of SunSirs, the domestic palm oil market showed mixed ups and downs in June, with a slight overall increase. On June 1st, the average market price of palm oil was 8,760 RMB/ton, and on June 26th, the average market price of palm oil was 8,560 RMB/ton, an increase of 0.21%.

Since June, the palm oil market has continued to decline weakly. Mainly due to high yields in the external market, Malaysia's palm oil production is estimated to increase by 3.07% from May 1st to 31st. The upward momentum at the futures level is insufficient. The sluggish demand for terminal oils and fats, coupled with multiple negative factors, has led to a weak decline in the domestic palm oil futures market, with spot prices mainly following the downward trend. As of June 6th, the average price of palm oil in the market has fallen to 8,520 RMB/ton, with a price drop of about 100 RMB/ton.

Since June 9th, the palm oil market has fluctuated and risen. Malaysia's palm oil production has declined, with South Malaysia's palm oil production decreasing by 4.0% month on month from June 1st to 15th, supported by external palm oil market, domestic palm oil futures market rising, and spot market supported. The demand for terminal oil is average, with a long short game, and the domestic palm oil futures market is fluctuating and rising. As of June 20th, the average price of palm oil in the market has risen to 8,800 RMB/ton, with a price increase of 200 RMB/ton.

At the end of the month, with hot weather and a decline in domestic oil demand, the palm oil market experienced a pullback after rising. As of June 26th, the average price of palm oil in the market fell to 8,560 RMB/ton, with a price drop of over 200 RMB/ton.

The palm oil analyst from SunSirs believes that in July, the demand for terminal oils and fats declined, and external bearish factors dominated, resulting in a weak upward trend in the palm oil market in the future.

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