Cofeed News: edible palm oil at China’s ports this week ended July 20th is further shriveled to 538,900 tonnes, approximately down 4,700 tonnes from 543,600 tonnes last week, and vis-a-vis 586,800 tonnes the corresponding week last month, it is also lowered by 47,900 tonnes or 8.2%. Nonetheless, it is still up 165,800 tonnes by 44.4% as compared to 373,100 tonnes year on year. Whilst stocks of industrial palm oil are around 84,200 tonnes, down 6,300 tonnes by 0.7% from 90,500 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. Turnover of palm oil on the domestic market this week also turns poor as buyers maintain cautious about buying amid languishing oils fundamentals, in detail, traded volume of palm oil this week is merely 6,400 tonnes, lower than 11,300 tonnes last week. As import profits increase, importers this week buy in three vessels of palm oil, mostly in September shipments. On the point, imports in September are estimated to rise by 0.04 Mln tonnes to 0.5 Mln tonnes, and August import estimates probably stay at 0.47-0.48 Mln tonnes, if such, stockpiles of palm oil will also be seen growing.

                               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: 0.47-0.48 Mln tonnes (0.34-0.35 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil). September: 0.50 Mln tonnes (0.34 Mln tonnes of 24-degree palm oil, 0.16 Mln tonnes of industrial palm oil), up 0.04 Mln tonnes 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.