Cofeed News: till December 1st(this week), domestic stocks of palm oil are seen to increase slightly, among which edible palm oil at China’s ports have increased to 502,700 tonnes by 0.3% from 500,900 tonnes last week in stocks, and up 7.3% against 468,300 tonnes the same period last month with an increase of 34,400 tonnes; while stocks of industrial palm oil have slightly accumulated to 71,000 tonnes by 3.6% from last week’s 68,500 tonnes, with a rise of 2,500 tonnes. Generally, Chinese buyers are obviously proactive in procurement as import margins go better in late November, where about 10 vessels loaded with palm oil for December delivery was bought in the end of November. In addition, December imports of 24-degree palm oil are revised up to 0.38-0.40 Mln tonnes, and though price gap between soybean oil and palm oil spots is expanded to 480 yuan/tonne, the figure is still far below the normal level of 800-1,000 yuan/tonne. In addition, the blending of palm oil is seriously refrained by colder weather in China, consequently, demand for palm oil is overwhelmingly dwarfed by that of soybean oil as buyers are more likely to purchase soybean oil. Later, domestic palm oil will continue to accumulate in stocks, notably, the total amounts in December are probably close to 0.60 Mln tonnes.

    Imports of palm oil are revised to be around 0.50-0.55 Mln tonnes in November(0.37-0.40 Mln tonnes of 24-degree palm oil, 0.13-0.15 Mln tonnes of industrial palm oil), and about 0.50-0.55 Mln tonnes in December(0.38-0.40 Mln tonnes of 24-degree palm oil, 0.12-0.15 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.