SunSirs: Exploring China Weak Palm Oil Market in April

According to the Commodity Market Analysis System of SunSirs, the domestic palm oil market fluctuated and fell in April, with an overall decline of over 7%. On April 1st, the average market price of palm oil was 9,750 RMB/ton. On April 27th, the average market price of palm oil was 9,064 RMB/ton, a decrease of 7.04%.

Since April, the performance of palm oil futures prices in foreign markets has been sluggish, and domestic oil demand is average. The rebound of domestic palm oil spot market is weak, and it continues to decline weakly. After the Qingming Festival, Malaysia is still in a period of increased production, with exports declining. Multiple bearish factors dominate, with palm oil futures prices falling in the external market and domestic palm oil futures falling in tandem, resulting in a weak spot market. The demand for terminal oils is poor, palm oil sales are flat, and the market continues to bottom out. As of April 18th, the average price of palm oil in the market has fallen to 9,150 RMB/ton, a decrease of more than 6%.

In the latter half of the month, Malaysia's production increased compared to the previous period, and the boosting effect of foreign palm oil futures market was limited. Domestic palm oil futures fell weakly, and the rebound of spot market was weak. The demand for terminal oils has increased, and palm oil sales have improved. The market has fluctuated, with the average price of palm oil falling to around 9,000 RMB/ton as of April 27th, a decrease of 7% from the beginning of the month.

The palm oil analyst from SunSirs believes that after the May Day holiday, there will still be favorable factors for palm oil in the external market, and the substitution effect of palm oil will increase. The palm oil market is expected to improve in the future.

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