SunSirs: China Palm Oil Market Oscillates and Falls in October

According to the Commodity Market Analysis System of SunSirs, the domestic palm oil market weakened in October and steadily declined, with a drop of over 3%. On October 1st, the average market price of palm oil was 9,226 RMB/ton, and on October 29th, the average market price of palm oil was 8,807 RMB/ton, a decrease of 3.86%.

Palm oil opened sharply after the holiday, with an opening price of 9,452 RMB/ton and a closing price of 9,570 RMB/ton, up 3.05% from September 30th. The futures market has been boosted, and the domestic palm oil spot market has also risen, with an average market price of 9,600 RMB/ton and a daily increase of over 300 RMB/ton.

In the middle of the month, the domestic palm oil market gradually weakened, with price fluctuations leading to a downward trend, with a decline of over 3%. This was mainly due to the growth period of Malaysian palm oil production. From October 1st to 20th, the palm oil production in South Malaysia increased by 2.71% month on month. The external market is bearish, with palm oil futures falling and spot prices following suit, with prices dropping by nearly 300 RMB/ton. As of October 23rd, the average price of palm oil in the market has fallen to around 9,000 RMB/ton.

At the end of the month, Malaysia's palm oil production is expected to increase, and the overseas palm oil market is expected to decline. The domestic palm oil futures market fell, and the spot market followed suit, with the decline widening. As of October 29th, the average price of palm oil in the market fell to 8,870 RMB/ton, a decrease of about 400 RMB/ton from the beginning of the month.

According to palm oil analysts from SunSirs, in November, the rigid demand for terminal oils and fats supported the bullish trend in the external market, and the palm oil market may stop falling and rise in the future.

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