Chinese Palm Oil Market Grew by Over 5% in January 2026

In January 2026, the palm oil market in China showed a strong increase, rising by more than 5%. At the beginning of the month, the average market price was 8,564 yuan per ton, and by January 26, it had risen to 9,000 yuan per ton, marking an increase of 5.09%.

This is reported by AgroReview

Production and Export of Palm Oil in Malaysia

Key factors influencing market dynamics included a reduction in production in Malaysia and an increase in exports. It is estimated that from January 1 to January 20, palm oil production in Malaysia decreased by 14.43%. Meanwhile, the export volume from January 1 to January 25 reached 1,099,033 tons, which is 7.97% higher compared to the same period last month (1,017,897 tons). Malaysia, as the largest producer of this product, is currently experiencing a production decline cycle, but the increase in exports supports prices and positively impacts the market.

Futures and Spot Markets, Demand Ahead of the Spring Festival

On the domestic Chinese futures market, there is active growth. On January 26, the main palm oil contract closed at 9,092 yuan per ton, which is 176 yuan higher than at the beginning of the month, representing a gain of 7.11%. Thus, both the futures market and the spot segment are showing synchronized growth.

Demand for palm oil is strengthening in connection with preparations for the Spring Festival. The warehousing market has become active, and traders are maintaining a high interest in purchasing. Sustained demand is contributing to increased sales volumes and the conclusion of new contracts, which supports positive dynamics in the domestic palm oil spot market.

“Analysts at SunSirs, specializing in palm oil, believe that after the Spring Festival, sustained demand at the terminal will decline, and all favorable factors will be exhausted. A sustainable upward trend in the palm oil market in the future will be insufficient, which may lead to a slight downturn.”