Cofeed News: edible palm oil at China’s ports this week ended August 3rd is reduced to 528,000 tonnes, a reduction of 39,700 tonnes as compared to 567,700 tonnes and contrasting with 563,100 tonnes the corresponding week last month, it is also down 35,100 tonnes by 6.2%. Nonetheless, it is otherwise up 219,000 tonnes by 70.9% vis-a-vis 309,000 tonnes year on year. Whilst stocks of industrial palm oil are around 64,200 tonnes, down 8,000 tonnes by 11.1% from 72,200 tonnes attained last week.

    Due to fewer palm oil arrivals nationwide this week, palm oil is seen shriveled in stocks. In addition, price gap between soybean oil and palm oil is expanded to 778 yuan/tonne this week, up 65 yuan/tonne from last week’s 713 yuan/tonne, yet turnover of palm oil on the domestic market this week goes better as some buyers are engaged in buying upon bargain hunting amid rallying futures, in detail, traded volume of palm oil this week reaches 16,000 tonnes contrasting with 2,900 tonnes last week. Whereas, as palm oil arrivals on average during August-to-September period are estimated to be around 0.47-0.5 Mln tonnes, supply will be generally assured later in the event that turnover overall is not huge though turns better.

                               Figure: Comparison of China's Palm Oil Stocks in Recent Years

    Estimated imports of palm oil are shown as follows: 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); October: 0.50 Mln tonnes (0.37 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil), all being 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.