I．National stocks
This week (as of May. 24th), edible palm oil stock totals 756,100 tonnes at domestic ports, down 7.46% from 817,100 tonnes last week and down 23,100 tonnes or 2.9% from 779,200 tonnes last month, and up 121,100 tonnes or 19.07% from 635,000 tonnes year on year. Meanwhile, industrial palm oil stock at main domestic ports totals 148,200 tonnes, up 18,600 tonnes by 14.35% from 129,600 tonnes last week.
The edible palm oil stock this week further declines in China, stock in South China still seeing a big drop. The spread between palm oil and soybean oil narrows this week. As of this Friday, the spread was 933 yuan/tonne, down 45 yuan/tonne from 978 yuan/tonne last week. However, with the buyers' purchase upon low prices the turnover for low prices increases. The turnover of palm oil this week was 31,900 tonnes compared with 11,300 tonnes last week. The palm oil arrivals are few. Besides, the palm oil demand will go up with the rise of temperature. Amid the increasing consumption of palm oil in May the palm oil demand is expected to further go up with rising temperature, which is favourable to destocking.
Fig.: China's palm oil stocks in recent years
II．Goods Arrivals
According to the latest statistics by Cofeed, the estimate of import volume for May is down 20,000 tonnes from last week at 470,000-550,000 tonnes (24-degree palm oil 350,000-400,000 tonnes and industrial palm oil 120,000-150,000 tonnes), and the estimate for June this week remains basically unchanged from last week at 410,000 tonnes (24-degree 290,000 tonnes and industrial palm oil 120,000 tonnes). The estimate of import volume for July is 420,000 tonnes (24-degree palm oil 300,000 tonnes and industrial palm oil 120,000 tonnes).
