According to the commodity analysis system of SunSirs, the domestic palm oil market rebounded weakly in December, and the overall market fell. On December 1st, the average market price of palm oil was 10,350 RMB/ton, and on December 31st, the average market price of palm oil was 10,102 RMB/ton, a decrease of 2.4%.

Since December, the palm oil market has experienced a surge, with prices approaching 10,500 RMB/ton, an increase of nearly 2%. Due to ongoing negative factors, palm oil experienced a plunge after rising, and the market continued to decline, with prices dropping to around 10,000 RMB/ton, a drop of over 3%. The current rise in palm oil prices is mainly driven by external market conditions. Due to poor terminal demand, there is insufficient momentum for sustained upward movement. After the rise, there is a pullback, and the price returns to a low level.

In the middle of the month, after a decline in the palm oil market, there was a wave of upward momentum. Due to a significant drop, the overall price fluctuated and fell below 10,000 RMB/ton, with an overall decline of over 4%. Due to ongoing bullish factors, palm oil experienced a rebound after a decline, with prices rising to 9,700 RMB/ton. The weak rebound of palm oil in this round is mainly due to the average demand for terminal oils, and the poor palm oil market in the Malaysian market. The palm oil market is under pressure to rise, and the weak decline is the main reason.

At the end of the month, the Malaysian palm oil market was boosted by the external market, while the domestic palm oil market continued to rise. As the rebound at the end of the month was not as significant as the decline, the overall palm oil market in December remained mainly downward.

The palm oil analyst from SunSirs believes that with the upcoming Spring Festival and the support of rigid demand for fats, there is still room for an upward trend in the palm oil market in the future.

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