Cofeed News: till December 15th (this week), edible palm oil at China’s ports are seen rising sharply to 598,200 tonnes by 14.8% from 521,000 tonnes last week in stocks, and the figure is up 20.8% from 495,300 tonnes corresponding period the previous month with an increase of 102,900 tonnes; while stocks of industrial palm oil have climbed to 84,800 tonnes by 21.5% from last week’s 69,800 tonnes, with a rise of 15,000 tonnes. Generally, domestic stocks continue to pile up, especially in North China and East China, and the figure is likely to reach 0.6 Mln tonnes. In addition, with soaring palm oil stocks at abroad, major producers have been exposed to considerable pressure on palm oil selling in near months when export quotes tumble impressively. On the other hand, Chinese buyers are obviously proactive in procurement as import margins go better where imports of 24-degree palm oil for December delivery are revised up at 0.4 Mln tonnes. Yet, as blending of palm oil is seriously refrained by colder weather, palm oil futures are overwhelmingly eclipsed amid a small price gap between soybean oil and palm oil spots to crimp its demand, generally, buyers should be prudent the time sales of palm oil are dim in market. Later, domestic palm oil will continue to accumulate in stocks, and to a large extent, stocks will total nearly 0.6-0.65 Mln tonnes around New Year’s Day.

    Imports of palm oil are estimated to be around 0.59-0.60 Mln tonnes in November (0.37-0.38 Mln tonnes of 24-degree palm oil, 0.20-0.22 Mln tonnes of industrial palm oil), about 0.52-0.55 Mln tonnes in December (0.40 Mln tonnes of 24-degree palm oil, 0.12-0.15 Mln tonnes of industrial palm oil), roughly 0.33-0.38 Mln tonnes for January in 2018 (0.2-0.25 Mln tonnes of 24-degree palm oil, 0.13 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.