Cofeed News: edible palm oil at China’s ports this week ended July 13th is cut to 543,600 tonnes, about 24,300 tonnes below 567,900 tonnes last week, and vis-a-vis 603,300 tonnes the corresponding week last week, it is also down 59,700 tonnes by 9.9%. Nonetheless, it is till up 156,700 tonnes by 40.5% as compared to 386,900 tonnes year on year. Stocks of industrial palm oil are otherwise around 90,500 tonnes, up 500 tonnes by 0.6% from 90,000 tonnes attained last week.

    On grounds that palm oil prices at home and abroad hand upside down, goods arrivals fall below expectation amid some defaults. That thereby sends edible palm oil stockpiles to fall further at China’s ports. Yet till Friday, price gap between soybean oil and palm oil is expanded to 753 yuan/tonne, about 65 yuan/tonne higher than that attained last week. As a result, turnover of palm oil on the domestic market this week is show a good momentum as some buyers make replenishment upon bargain hunting, in detail, traded volume of palm oil this week is around 11,300 tonnes, higher than 21,000 tonnes last week. Yet despite good turnover of palm oil for the moment, average 0.46-0.47 Mln tonnes goods arrivals in August and September will guarantee supply of palm oil.

                        Figure: Comparison of domestic palm oil stocks in recent years.

    Estimated imports of palm oil are shown as follows: July: approximately 0.38-0.41 Mln tonnes (0.25-0.28 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.