Cofeed News: till June 15th this week, edible palm oil at China’s ports comes into at 592,100 tonnes, further down 18,400 tonnes from 610,500 tonnes last week, and down 53,400 tonnes by 8.3% vis-a-vis 645,500 tonnes the same week of last month. Stocks of industrial palm oil stand at 75,400 tonnes, down 4,500 tonnes by 5.6% from 79,900 tonnes attained last week.

    Till Friday, price gap between soybean oil and palm oil further expands to 686 yuan/tonne. Given oils performance is boosted by escalating trade tensions between China and the US in the latter part of this week, some buyers engage themselves in buying upon bargain hunting. That contributes to a better turnover this week, about 13,500 tonnes in total as opposed to 4,200 tonnes last week, and on this point, stocks of palm oil this week further edge down. 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 0.42-0.45 Mln tonnes in June (about 0.30-0.32 Mln tonnes for 24-degree palm oil and 0.10-0.13 Mln tonnes for industrial palm oil). By and large, stockpiles will largely trend up on grounds that average 0.45 Mln tonnes of palm oil will arrive at ports during July and September period.

                        Figure: Comparison of domestic palm oil stocks in recent years

    Estimated imports of palm oil are shown as follows: June: around 0.42-0.45 Mln tonnes (0.30-0.32 Mln tonnes of 24-degree palm oil, 0.10-0.13 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.