SunSirs: Good News Leads August Palm Oil Market to Shake and Rise

According to the Commodity Market Analysis System of SunSirs, the palm oil market in August showed mixed ups and downs, mainly oscillating upwards, with an increase of over 4%. On August 1st, the average market price of palm oil was 7,854 RMB/ton, and on August 28th, the average market price of palm oil was 8,210 RMB/ton, with a price increase of 4.53%.

Starting from August, with high temperatures and flat demand for oil consumption, the quantity of palm oil purchased by end-users has declined, resulting in high palm oil inventories and doubled pressure. The export data of palm oil from Malaysia, the main producing country, is improving, but the overall support effect is limited. The external market lacks the driving force to raise prices, and domestic palm oil futures are oscillating downward, while the spot market is weakly declining. As of August 9th, the average price of palm oil in the market has dropped to 7,682 RMB/ton, falling below 7,700 RMB/ton.

After mid month, the domestic palm oil market hit bottom and rebounded, with prices continuously rising. This round of palm oil prices has continued to rise, mainly due to the increase in Malaysian palm oil futures prices in the external market, supported by import costs, and the continuous rise in domestic palm oil futures market, with spot market prices following suit. As of August 28th, the average price of palm oil in the domestic market has risen to around 8,200 RMB/ton, an increase of over 7%.

The agricultural product analyst of SunSirs believes that in September, with the concentrated opening of primary, secondary, and tertiary schools, the demand for terminal oils and fats will increase, and there is still room for palm oil to rise in the future market.

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