Cofeed News: till December 22nd this week, edible palm oil at China’s ports are seen falling to 593,700 tonnes by 0.7% from 598,200 tonnes last week in stocks, but the figure is 14.2% higher than 519,800 tonnes corresponding period the previous month with an increase of 73,900 tonnes; while stocks of industrial palm oil have climbed to 91,700 tonnes by 0.8% from last week’s 84,800 tonnes, with a rise of 6,900 tonnes. Generally, domestic stocks of palm oil pile up, but actual demand is somehow limited by the small price gap between palm oil and others, resulting in a recession in turnover. Moreover, the right time for goods replenishment is delayed as China’s Spring Festival is scheduled in February, on the other hand, oil futures at home and abroad have tumbled sharply in recent days, consequently, stockpiling in the run-up to holidays may fail to meet the expectations as buyers are now cautious about the market. On the whole, domestic stocks of palm oil are estimated to pile up later.

 

                  Figure: Comparison of domestic palm oil stocks in recent years(unit: 10,000 tonnes)

    Imports of palm oil are estimated to be around 0.55-0.58 Mln tonnes in December (0.4 Mln tonnes of 24-degree palm oil, 0.15-0.18 Mln tonnes of industrial palm oil), up 30,000 tonnes from last week; roughly 0.4 Mln tonnes for January in 2018 (0.25-0.3 Mln tonnes of 24-degree palm oil, 0.15 Mln tonnes of industrial palm oil), up 50,000 tonnes over last week. Arrivals of palm oil may change with the market and shipping schedule, therefore information will be updated according to latest shipments and possible defaults.