I．National stocks
This week (as of Dec. 14th), edible palm oil stock at domestic ports totals 443,200 tonnes, down 9,000 tonnes by 1.9% from 452,200 tonnes last week, yet up 18,000 tonnes by 4.2% from 425,200 tonnes month-on-month, and down 155,000 tonnes by 25.9% from 598,200 tonnes year-on-year. Meanwhile, industrial palm oil stock at main domestic ports totals 83,700 tonnes, down 13,000 tonnes by 11.9% from 95,000 tonnes last week.
Edible palm oil has seen a declining stock this week due to delayed arrivals, but buyers are still active in purchasing amid the improved import profits. According to Cofeed, 24-degree palm oil imports will be around 500,000-520,000 tonnes in December. Besides, the price spread between soybean oil and palm oil has continued narrowing by 105 yuan/tonne from 1,060 yuan/tonne last week to 955 yuan/tonne by this Friday, a sharp drop of 228 yuan/tonne from a high point of 1,183 yuan/tonne on November 27th. And palm oil has seen a reduced blend amount as the weather gets cool. The market is getting hit in recent few days particularly, since buyers remain cautious on account of the sliding markets both at home and abroad. The stock has been extending in rebuilding under arrival delays, but later stock is still more likely to rise as later import will exceed the demand.
Fig.: China's palm oil stocks in recent years
II. Goods Arrivals
According to Cofeed, import volume is unchanged from the discreet value given last week at 650,000-670,000 tonnes for December (24-degree palm oil 500,000-520,000 tonnes and industrial palm oil 150,000-170,000 tonnes), at 410,000-430,000 tonnes for January (24-degree palm oil 280,000-300,000 tonnes and industrial palm oil 130,000 tonnes), and at 430,000 tonnes for February (24-degree palm oil 300,000 tonnes and industrial palm oil 130,000 tonnes). (Shipping schedule may change in accordance with the market, so information will be updated upon latest shipment and violation in shipment).
