SunSirs: Long Short Game, China Domestic Palm Oil Market Plummets

According to the Commodity Market Analysis System of SunSirs, since December, there has been a long short game, and the palm oil spot market has experienced a sharp decline after rising, with prices oscillating and falling, with an overall decline of over 2%. On December 1st, the average market price of palm oil was 10,350 RMB/ton, and on December 13th, the average market price of palm oil was 10,078 RMB/ton, a decrease of 2.63% in price.

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.

Li Bing, a palm oil analyst at SunSirs, believes that after mid December, Malaysian palm oil in the external market is still in a production reduction cycle, and there is still room for an upward trend in the palm oil market in the future.

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