Cofeed News: edible palm oil at China’s ports this week ended June 29th is pegged at 560,100 tonnes, basically down 57,500 tonnes contrasting with 617,600 tonnes last week, but vis-a-vis 626,600 tonnes the same week of May, it is still down 66,500 tonnes by 10.6%. Stocks of industrial palm oil come into at 83,900 tonnes, up 9,700 tonnes by 13.1% from 74,200 tonnes attained last week.

    Till Friday, edible palm oil has fallen to 560,100 tonnes in stockpiles owing to less arrivals, especially in South China. According to latest investigation, imports of palm oil in June are estimated to be around 0.35-0.39 Mln tonnes, down 40,000 tonnes from last week, and approximately 0.43-0.44 Mln tonnes in July imports for Chinese importers increase vessels buying seeing lucrative import margins. But narrowed price gap between soybean oil and palm oil at 635 yuan/tonne still subdues demand for palm oil in end users. Traded volume of palm oil this week is only around 1,000 tonnes contrasting with 13,500 tonnes last week. On this point, supply of palm oil is basically assured.

                             Figure: Comparison of domestic palm oil stocks in recent years

    Estimated imports of palm oil are shown as follows: June: around 0.35-0.39 Mln tonnes (0.25-0.26 Mln tonnes of 24-degree palm oil, 0.10-0.13 Mln tonnes of industrial palm oil), down 0.04 Mln tonnes from last estimate. 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: 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.