I．National stocks
This week (as of Jan. 4th), edible palm oil stock totals 513,100 tonnes at domestic ports, up 38,000 tonnes by 8% from 475,100 tonnes last week and up 60,900 tonnes by 13.5% from 452,200 tonnes month-on-month, yet down 126,500 tonnes by 19.8% from 639,600 tonnes year-on-year. Meanwhile, industrial palm oil stock at main domestic ports totals 83,200 tonnes, down 4,100 tonnes by 4.7% from 87,300 tonnes last week.
The stock of edible palm oil continues to grow this week, in South China particularly, for there have been intensive arrivals in late December and early January. The price spread between soybean oil and palm oil has been expanded by 22 yuan from 943 yuan/tonne last week to settle at 965 yuan/tonne as of this Friday, still far below the high level of 1,183 yuan/tonne by 218 yuan/tonne on November 27. Due to the low temperatures in winter, palm oil has already suffered a faltering demand. Worse still, its blending shares have been further crippled by its unsatisfactory reputation since packing oil factories have been more cautious in adding palm oil after the new GB (national standard) for vegetable oil made it mandatory to mark all proportion of ingredients on packing oil. The trading volume of palm oil remains light this week as most buyers tend to purchase soybean oil. In this case, palm oil market can almost rest easy in supply later.
Fig.: China's palm oil stocks in recent years
II. Goods Arrivals
According to the latest statistics by Cofeed, the import volume is reduced by 50,000 tonnes from the discreet given last week to settle at 550,000 tonnes for December (24-degree palm oil 400,000 tonnes and industrial palm oil 150,000 tonnes), and it remains basically unchanged at 480,000-520,000 tonnes for January (24-degree 350,000-370,000 tonnes and industrial palm oil 130,000-150,000 tonnes), and at 430,000 tonnes for February (24-degree 300,000 tonnes and 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).
