I. National stocks

In the week ending July 17, edible palm oil stock totals 363,200 tonnes at domestic ports, up 1.3% from 358,500 tonnes a week earlier; up 11,100 tonnes or 3.15% from 352,100 tonnes the same period last month; down 293,500 tonnes or 44.69% from 656,700 tonnes the corresponding period last year. Meanwhile, industrial palm oil stock at domestic ports totals 119,500 tonnes, a decline of 200 tonnes or 0.1% from 119,700 tonnes in the previous week.

Palm oil stocks in China rebound a bit due to more arrival of cargoes of palm oil this week. Meanwhile, palm oil price rises by 400-470 CNY/tonne while soybean oil price increases by 260-400 CNY/tonne. Consequently, the price spread between palm oil and soybean oil has narrowed by 100 CNY/tonne from 650 CNY/tonne last Friday, at 550 CNY/tonnes. In this case, buyers are not active in purchasing. Palm oil trading this week turns to be light, totaling 28,660 tonnes, a reduction of 24,120 tonnes or 45.69% from 52,780 tonnes last week. Besides, there are nearly 450,000 tonnes of RBD palm olein arriving at ports in July. But the market demand is limited due to narrowing price spread of soyoil and palm oil. It is predicted that palm oil stocks at ports will still moderately pick up in later period.

II. Goods Arrivals

According to the latest statistics by Cofeed, palm oil imports forecast at 570,000 tonnes (RBD palm olein 450,000 tonnes and industrial palm oil 120,000 tonnes) in July, up by 50,000 tonnes from last week; 540,000 tonnes (RBD palm olein 420,000 tonnes and industrial palm oil 120,000 tonnes) in August, up by 40,000 tonnes from lasr; 570,000 tonnes (RBD palm olein 450,000 tonnes and industrial palm oil 120,000 tonnes) in September.

III. Margins and Shipments