Cofeed News: till October 27th(this week), edible palm oil stocks have accumulated to 470,700 tonnes by 2.8% from 457,700 tonnes last week, and by 30% against 362,300 tonnes last month with an increase of 108,400 tonnes; industrial palm oil stocks are 81,000 tonnes in total in Chinese major ports, with an increase of 15,800 tonnes by 24.2% from last week’s 65,200 tonnes. Nevertheless, palm oil spots are stronger than soybean oil in performance as spots spread between soybeans and palm is plunged significantly by 69.5% from 700 yuan/tonne($106) in September to 213 yuan/tonne($32), and the blending of palm oil is seriously affected by gradually colder weather. Later, domestic palm oil stocks are expected to increase but serious upside down and shipment defaults in some importers lead to a lower-than-expected arrival, on this very note, it takes time for palm oil stockpiles to pile up.

                            Figure: Comparison of domestic palm oil stocks in recent years

    Imports of palm oil in October are adjusted to 0.40-0.43 Mln tonnes(0.30-0.31 Mln tonnes of 24-degree palm oil, 0.1-0.12 Mln tonnes of industrial palm oil), 0.40-0.42 Mln tonnes in November(0.30 Mln tonnes of 24-degree palm oil, 0.1-0.12 Mln tonnes of industrial palm oil); roughly 0.35-0.37 Mln tonnes in December(0.20-0.25 Mln tonnes of 24-degree palm oil, 0.1 Mln tonnes of industrial palm oil). Arrivals of palm oil may change with the market, therefore information will be updated according to latest shipments and possible defaults.