Cofeed News: till June 8th this week, edible palm oil at China’s ports comes into at 610,500 tonnes, further down 2,200 from 632,5000 tonnes last week, and down 78,200 tonnes by 11.3% vis-a-vis 688,700 tonnes the same week of last month. Stocks of industrial palm oil stand at 79,900 tonnes, down 5,000 tonnes by 5.9% from 84,900 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, imports of palm oil are estimated 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). Small price gap between soybean oil and palm oil subdues palm oil consumption and additionally, oils futures on DCE (Dalian Commodity Exchange) this week still move downward. That finally triggers buying caution of market participants, then leading to a sluggish turnover. By and large, stockpiles will largely trend up provided if imports overwhelmingly dwarf demand when palm oil arrives at ports intensively later.

 

                   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). June: around 0.45 Mln tonnes (0.32 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil). July: approximately 0.43-0.44 Mln tonnes (0.30-0.31 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil); 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), all basically unchanged from last estimates. Arrivals of palm oil may change with the market and shipping schedule, therefore information will be updated according to latest shipments and possible defaults.