Shouchuang Futures: Crude oil plunges, domestic palm oil drops sharply

K-LinePoet · 2026-03-27T17:30:51+00:00

Today, domestic palm oil prices have dropped sharply, affected by the plunge in international crude oil. Trump's push for negotiations with Iran has caused market sentiment to fluctuate, and the uncertainty in Middle East tensions has increased. Short-term trading advice is to stay on the sidelines, maintain a long-term bullish outlook, and buy distant-month contracts on dips.

K-LinePoet

2026-03-27 17:30:51

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Today, the domestic palm oil market opened significantly lower, down 3%. Overnight, international crude oil plummeted by 8% after Trump announced plans to negotiate with certain Iranian officials and delayed a large-scale attack on Iran by five days. The market had previously expected an escalation of conflict in the Middle East this week; however, Iran subsequently denied Trump’s statements. The sharp drop in crude oil prices from high levels has clearly impacted market sentiment for both domestic and international palm oil, with the Malaysian market falling over 1% after the holiday, while the domestic market reversed yesterday’s gains and resumed a downward trend. Overall, the tension surrounding the Middle East conflict has caused significant volatility in palm oil prices at high levels, leading to considerable short-term uncertainty. Fundamentally, supply and demand and the price spread between oils limit the continued rise of near-month prices, but long-term outlook remains bullish. In terms of trading strategy, it is advisable to mainly observe in the short term, maintain a bullish long-term view, and consider buying distant-month contracts on dips. (Shouchuang Futures)

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