In the week ending May 29, edible palm oil stock totals 417,100 tonnes at domestic ports, down 0.4% from 429,300 tonnes a week earlier; down 93,400 tonnes or 18.29% from 510,500 tonnes the same period last month; down 312,300 tonnes or 42.82% from 729,400 tonnes the same period last year. Meanwhile, industrial palm oil stock at domestic ports totals 95,750 tonnes, a decline of 3,500 tonnes or 3.5% from 99,250 tonnes last week. It still sees not many cargoes of palm oil arrival. Besides, the price spread between soybean oil and palm oil extend slightly at home and abroad. As of this Friday, the price spread is 638 CNY/tonne, extending by 5 CNY/tonne from 633 CNY/tonne last week. Likewise, palm oil futures go up this week, so some buyers still purchase on the dips. Thus, the trading in palm oil market goes better in lows, and domestic palm oil stocks continue decreasing. Additionally, Chinese buyers still purchase few boatloads of palm oil in later period, leading to low inventory of palm oil.

 

Region /Port	Edible Palm Oil Stocks（0'000 tonne）					Industrial Palm Oil Stocks
	W22	W21	Change	M-O-M	Y-O-Y	W22	W21	Change
Tianjin Port	9.2	8.38	0.82	62.83%	-44.41%	2.6	2.4	0.2
Hebei	0.7	0.1	0.6	133.30%	16.67%	0	0.14	-0.14
Shandong Port	1.95	2.78	-0.83	0.00%	-45.68%	1.035	1.175	-0.14
East China	12.95	13.55	-0.6	-22.20%	-55.19%	4.1	4.35	-0.25
Guangdong	14.96	15.31	-0.35	-34.27%	-17.80%	1.71	1.7	0.01
Guangxi	0.5	0.96	-0.46	-64.03%	-80.39%	0.13	0.16	-0.03
Fujian	1.45	1.85	-0.40	-38.29%	-43.14%	0	0	0
Total：	41.71	42.93	-1.22	-18.29%	-42.82%	9.575	9.925	-0.35

 

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

 

 

According to the latest statistics by Cofeed, palm oil imports in May forecast at 420,000-440,000 tonnes (RBD palm olein 300,000-320,000 tonnes and industrial palm oil 120,000 tonnes) and flat from last week; that for June is 420,000 tonnes (RBD palm olein 300,000 and industrial palm oil 120,000 tonnes) unchanged from the previous week; that for July is 370,000 tonnes (RBD palm olein 250,000 and industrial palm oil 120,000 tonnes) with no change from last week.

 

 

Date	Sailing Schedule	CNF （USD/tonne）	Duty Paid (CNY/tonne)	DCE (CNY/tonne)	Import Margin
5/27/2021	Jul, 2020	560	4833	4694	-139
5/27/2021	Sep, 2020	555	4797	4694	-103
5/27/2021	Nov, 2020	557.5	4812	4752	-60
5/28/2021	Jul, 2020	570	4923	4738	-185
5/28/2021	Sep, 2020	562.5	4860	4738	-122
5/28/2021	Oct, 2020	562.5	4860	4782	-78
5/28/2021	Nov, 2020	562.5	4860	4782	-78
5/29/2021	Jul, 2020	570	4913	4766	-147