I. National stocks

In the week ending July 10, edible palm oil stock totals 358,500 tonnes at domestic ports, down 7.2% from 386,800 tonnes a week earlier; down 17,700 tonnes or 4.7% from 376,200 tonnes the same period last month; down 284,000 tonnes or 44.2% from 642,500 tonnes the corresponding period last year. Meanwhile, industrial palm oil stock at domestic ports totals 119,700 tonnes, an advance of 6,700 tonnes or 5.9% from 113,000 tonnes in the previous week.

Palm oil stocks in China continue falling due to less arrival of cargoes of palm oil this week. Meanwhile, palm oil price further declines but soybean oil price keeps strong. As of this Friday, spot Grade-I soyoil price prevails at 5,850-5,980 CNY/tonne in coastal regions, an increase of 10-60 CNY/tonne from last week (Tianjin traders 5,850-5,860; Rizhao traders 5,880; Zhangjiagang traders 5,980 and Guangzhou traders 5,930-5,940). Consequently, the price spread between palm oil and soybean oil has enlarged, extending by 92 CNY/tonne to 650 CNY/tonne from 558 CNY/tonne a week earlier. In this case, some buyers make replenishment upon the low price. Thus, palm oil trading still goes better than the previous week, totaling 52,780 tonnes, up by 15,420 tonnes or 41.27% from 37,360 tonnes last week. It is predicted that palm oil stocks at ports will still stay at lows in the near term.

II. Goods Arrivals

According to the latest statistics by Cofeed, palm oil imports forecast at 520,000 tonnes (RBD palm olein 400,000 tonnes and industrial palm oil 120,000 tonnes) in July, flat; 500,000 tonnes (RBD palm olein 380,000 tonnes and industrial palm oil 120,000 tonnes) in August, flat; 470,000 tonnes (RBD palm olein 350,000 tonnes and industrial palm oil 120,000 tonnes) in September.

III. Margins and Shipments