According to the Commodity Market Analysis System of Shengyi Society, the domestic palm oil market fluctuated and rose mainly in February, with an overall increase of nearly 5%. On February 1st, the average market price of palm oil was 9430 yuan/ton, and on February 27th, the average market price of palm oil was 9900 yuan/ton, an increase of 4.98%.

Long Short Game: Palm oil market oscillates and rises in February

During the Spring Festival, the overseas oil and fat market rose, and after the holiday, the palm oil market saw a rebound. The domestic futures market continued to rise, and the palm oil futures market pulled up, while the spot market followed suit. In addition, the main producing country Malaysia is currently experiencing a production reduction cycle, resulting in a 14.01% decrease in palm oil production from January 1st to 31st compared to the previous period.

In the middle of the month, Malaysia’s palm oil production forecast was raised due to negative factors, and the palm oil market experienced a decline after rising. Due to the low inventory of palm oil in the domestic market and tight supply, the palm oil market has experienced another upward trend after a decline, with high volatility being the main trend and the market remaining strong. Continuously hovering around the 10000 yuan mark. As of February 19th, the average price of palm oil in the domestic market has once again exceeded 10000 yuan/ton, and the market has risen.

At the end of the month, Malaysia’s palm oil exports declined, leading to a decline in the foreign palm oil market. Domestic palm oil futures followed suit and the spot market continued to weaken. The average price of palm oil in the domestic market has fallen below 10000 yuan, dropping to 9900 yuan/ton, a decrease of over 3%.

According to palm oil analysts from Shengyi Society, there are still favorable factors for Malaysian palm oil in March, and there is still room for domestic palm oil prices to rise in the future.