Cofeed News: till January 19th this week, edible palm oil at China’s ports has increased to 661,200 tonnes by 3.4% from 639,200 tonnes last week in stocks, and the figure is 5.6% higher than 600,400 tonnes corresponding period the previous month with an increase of 101,000 tonnes; while stocks of industrial palm oil have lessened to 78,400 tonnes by 8.5% from last week’s 85,700 tonnes, with a reduction of 7,300 tonnes. Generally, domestic stocks of palm oil rise sharply from last week, especially in Tianjin province. Though Chinese Lunar New Year is around the corner when it’s the traditionally golden time for palm oil purchasing, blending of palm oil nationwide is falling significantly on account of lower temperatures. As of January 19th, price gap between soybean oil and palm oil spots settles at 443 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 indeed, domestic stocks of palm oil will be probably rising in light of gradually less contributions of holidays to the consumption when small-packing stockpiles draw to an end.

                            Figure: Comparison of domestic palm oil stocks in recent years

    Imports of palm oil are estimated to be around 0.40-0.45 Mln tonnes for January import in 2018 (0.28-0.33 Mln tonnes of 24-degree palm oil, 0.12 Mln tonnes of industrial palm oil), basically flat over last week; about 0.27-0.32 Mln tonnes for February import in 2018 (0.17-0.20 Mln tonnes of 24-degree palm oil, 0.10-0.12 Mln tonnes of industrial palm oil), 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.