Since January, palm oil prices have remained strong. On January 10, the Malaysian MPOB report was released. The report was rather bullish, and palm oil prices rose sharply. Up to January 13, the average palm oil market price was 6,804 RMB / ton, which was a 3.69% increase from the price in early January and a 21.89% increase from the price in early December. After the rally on the 13th, it immediately ushered in a sharp decline, with a single day drop of 2.65%.

Soybean oil steadily rose on the back of palm oil, which is close to 10% higher than in early December. On the 14th, driven by the big drop of palm oil, the soybean price ushered in a sharp drop. The average price of soybean oil market was 7,123 RMB / ton, with a single day drop of 1.43%.

Palm oil aspect, in the first half of January, the market price of palm oil began to rise oscillatingly. On the 13th, supported by the MPOB report, the output of Malaysia greatly reduced, and prices ushered in a sharp rise. Due to the sharp increase in edible oil import amount and the fact that the terminal stock market is nearing its end, the rise of palm oil was short-lived. On the 14th, a sharp dive took place, and price went back to original level.

Soybean oil aspect, the big rise and fall of soy oil can attribute to palm oil. Under the support of the rise of palm oil, on the 13th, soybean oil also ushered in a rise. Palm oil rose by nearly 2 points and soybean oil follows. The increase was small, close to 0.5%. Palm oil fell 2.65% on the 14th, and soybean oil fell by 1.43%.

Data: From January to December 2019, China imported 88.511 million tons of soybeans, an increase of 474,000 tons, an increase of 0.5% compared with 88.037 million tons in 2018.

From January to December 2019, China imported a total of 9.533 million edible vegetable oils, an increase of 3.243 million tons from the 6.29 million tons in 2018, an increase of 51.56%.

Market forecasting aspect, Li Bing, an agricultural product analyst at SunSirs, believes that near the Spring Festival holiday, the news of production reduction in the main producing areas of palm oil is supported. And there is still room for growth in the short term. In addition, soybean oil plants have stopped for maintenance and supply is tight. Due to the current high prices of palm oil and soybean oil, there is limited room for growth in the market outlook.

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