Cofeed News: till November 24th(this week), stocks of edible palm oil at China’s ports have decreased to 500,900 tonnes by 2.3% from 512,700 tonnes last week, but up 10.9% against 451,700 tonnes the same period last month with an increase of 49,200 tonnes; while stocks of industrial palm oil have slightly trimmed to 68,500 tonnes by 1.4% from last week’s 69,500 tonnes, with a reduction of 1,000 tonnes. Generally, domestic stocks of palm oil this week start to fall as Chinese buyers are proactive in procurement the time import margins go better, where transaction upon 10 vessels loaded with palm oil for December delivery was made last week, though price gap between soybean oil and palm oil spots is regained to 493 yuan/tonne, still far below the normal level of 800-1,000 yuan/tonne. In addition, the blending of palm oil is seriously affected by colder weather in China, consequently, sales of palm oil is quite dim. Later, domestic palm oil will continue to accumulate where around 0.60 Mln tonnes in stocks may be reached in end-December.

                          Figure: Comparison of domestic palm oil stocks in recent years

    Imports of palm oil are estimated to be around 0.50 Mln tonnes in November(0.38-0.40 Mln tonnes of 24-degree palm oil, 0.1-0.12 Mln tonnes of industrial palm oil), and about 0.50-0.51 Mln tonnes in December(0.39-0.40 Mln tonnes of 24-degree palm oil, 0.1-0.12 Mln tonnes of industrial palm oil). Arrivals of palm oil may change with the market and shipping schedule, therefore information will be updated according to latest shipments and possible defaults.