Cofeed News: till January 12th this week, edible palm oil at China’s ports are seen shriveling to 639,200 tonnes by 0.06% from 639,600 tonnes last week in stocks, but the figure is 16.8% higher than 547,200 tonnes corresponding period the previous month with an increase of 92,000 tonnes; while stocks of industrial palm oil have lessened to 85,700 tonnes by 7% from last week’s 92,200 tonnes, with a reduction of 6,500 tonnes. Generally, domestic stocks of palm oil are lower than a weak earlier. As of January 12th, price gap between soybean oil and palm oil spots settles at 390 yuan/tonne, mirroring light turnover of palm oil when competing with soybean oil prices in market amid buyers’ preference for the latter. All in all, January import of palm oil of 24-degree melting point is now around 0.28-0.30 Mln tonnes, and accordingly, importers’ sentiment for palm oil buying may be uplifted later when a tariff on exports is removed in Malaysia. China’s imports of palm oil in former fifteen days of January total 89,650 tonnes, according to ITS, an institution for cargo survey, growing by 19,690 tonnes from 69,960 tonnes last month. Indeed, domestic stocks of palm oil will be probably rising in light of gradually less contributions of holidays to the consumption.

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

    Imports of palm oil are estimated to be around 0.52-0.57 Mln tonnes in December (0.4-0.41 Mln tonnes of 24-degree palm oil, 0.12-0.16 Mln tonnes of industrial palm oil); roughly 0.40-0.43 Mln tonnes for January import in 2018 (0.28-0.30 Mln tonnes of 24-degree palm oil, 0.12-0.13 Mln tonnes of industrial palm oil); about 0.27-0.32 Mln tonnes for February import in 2018 (0.17-0.19 Mln tonnes of 24-degree palm oil, 0.10-0.13 Mln tonnes of industrial palm oil), all remaining unchanged when compared with estimates 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.