This week (as of Jan. 10), edible palm oil stock totals 852,300 tonnes at domestic ports, up 7.3% from 794,100 tonnes last week; up 139,000 tonnes or 19.5% from 713,300 tonnes the same period last month; up 336,100 tonnes or 65.11% from 516,200 tonnes the same period last year. Meanwhile, industrial palm oil stock at domestic ports totals 121,500 tonnes, down 9,400 tonnes or 7.2% from 130,900 tonnes last week.

The price spread between soybean oil and palm oil changes a little. As of this Friday, the price spread is flat from 525 yuan/tonne last week. With the temperature decreasing, it is unfavorable for the increase of substitution consumption of palm oil. In particular, the usage volume for palm oil blending will sharply shrink under low winter temperature. Overall, palm oil trading turns light this week, which totals 15,100 tonnes, down by 6,850 yuan/tonne or 31.2% from 21,950 yuan/tonne last week. In addition, palm oil stock continues to be pulled up by intensive arrival of cargoes at ports this week.

Fig.: China's palm oil stocks in recent years

According to the latest statistics by Cofeed, the estimate of import volume for January this week is 470,000 tonnes, up by 50,000 tonnes from last week (RBD palm olein 300,000 tonnes and industrial palm oil 120,000 tonnes). And the estimate for February is 350,000 tonnes unchanged with last week (RBD palm olein 200,000 and industrial palm oil 120,000 tonnes).