I. National stocks

Palm oil stocks in China keep recovering this week. In the week ending June 26, edible palm oil stock totals 410,100 tonnes at domestic ports, up 3.6% from 395,800 tonnes a week earlier; down 7,000 tonnes or 1.7% from 417,100 tonnes the same period last month; down 249,000 tonnes or 37.78% from 659,100 tonnes the corresponding period last year. Meanwhile, industrial palm oil stock at domestic ports totals 103,800 tonnes, an advance of 10,500 tonnes or 11.25% from 93,300 tonnes in the previous week. In July, the arrival of RBD palm olein at ports will increase to more than 400,000 tonnes, according to the latest estimate by market. Besides, the price spread between soybean oil and palm oil is narrowing continually, which is 445 CNY/tonne for the moment. This will curb market demand for palm oil. Thus, palm oil stocks at ports are projected to continue rising.

II. Goods Arrivals

According to the latest statistics by Cofeed, palm oil imports forecast at 470,000 tonnes (RBD palm olein 350,000 tonnes and industrial palm oil 120,000 tonnes) in June and up 20,000 tonnes from last week; 520,000 tonnes (RBD palm olein 400,000 tonnes and industrial palm oil 120,000 tonnes) in July, up 50,000 tonnes from the previous week; 500,000 tonnes (RBD palm olein 380,000 tonnes and industrial palm oil 120,000 tonnes) in August, unchanged with last week.

III. Margins and Shipments