Cofeed News: till June 1st this week, edible palm oil at China’s ports comes into at 632,500 tonnes, further down 2,500 from 635,000 tonnes last week, and down 65,800 tonnes by 9.4% vis-a-vis 698,300 tonnes the same week of last month. Stocks of industrial palm oil stand at 84,900 tonnes, down 3,500 tonnes by 0.4% from 88,400 tonnes attained last week.

    Stocks of palm oil this week further edge down due to delayed shipments. And as Chinese importers have high enthusiasm in vessels buying seeing lucrative import margins, import outlook is promising. Notably, another 5 vessels are bought this week and imports of palm oil are revised up to be 0.45 Mln tonnes in June (about 0.32 Mln tonnes for 24-degree palm oil and 0.13 Mln tonnes for industrial palm oil), 0.02 Mln tonnes higher than last estimates. Till Friday, price gap between soybean oil and palm oil further expands to 608 yuan/tonne, which subdues palm oil consumption and additionally, oils futures on DCE (Dalian Commodity Exchange) this week also move downward. That finally pales buying interest of market participants, then leading to a sluggish turnover this week, in detail, traded volumes this week total 7,600 tonnes. By and large, stockpiles later will largely trend up provided if imports overwhelmingly dwarf demand.

                         Figure: Comparison of domestic palm oil stocks in recent years

    Estimated imports of palm oil are shown as follows amid delayed shipments: May delivery: 0.38-0.39 Mln tonnes (0.25-0.26 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil), unchanged from last estimates. June: around 0.45 Mln tonnes (0.32 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil), up 0.02 Mln tonnes. July: approximately 0.44 Mln tonnes (0.31 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil), unchanged from last estimates; August: nearly 0.47 Mln tonnes (0.34 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil). September: 0.46 Mln tonnes (0.30 Mln tonnes of 24-degree palm oil, 0.16 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.