I. National stocks

Due to less arrival of palm oil cargoes this week, the price spread between palm oil and soybean oil in China continues widening. As of this Friday (Sept 4), the price spread sets at 640 CNY/tonne, extending by 12 CNY/tonne from 628 CNY/tonne last Friday. Besides, as palm oil futures further go up at home and broad, some buyers still purchase upon the low price. Accordingly, palm oil trading at low levels turns better this week, totaling 59,070 tonnes (34,900 tonnes for spot contract and 9,000 tonnes for forward contract), an increase of 15,170 tonnes or 34.6% versus 43,900 tonnes last week. As a result, palm oil inventory this week falls again.

In the week ending September 4, edible palm oil stock totals 327,300 tonnes at nationwide ports, down by 7.90% from 355,400 tonnes a week earlier; down by 26,300 tonnes or 7.40% from 356,300 tonnes in the previous month; down by 251,700 tonnes or 43.47% from 578,950 tonnes the corresponding period last year. Meanwhile, industrial palm oil stock at domestic ports amounts to 139,500 tonnes, a drop of 15,900 tonnes or 10.23% from 155,400 tonnes in the previous week.

II. Goods Arrivals

According to the latest statistics by Cofeed, China is projected to bring in 620,000 tonnes of palm oil (RBD palm olein 500,000 tonnes and industrial palm oil 120,000 tonnes) in September, up by 20,000 tonnes from a week earlier; 620,000 tonnes in October (RBD palm olein 500,000 tonnes and industrial palm oil 120,000 tonnes), up by 50,000 tonnes from last week. And palm oil imports in November are expected to be 570,000 tonnes (RBD palm olein 450,000 tonnes and industrial palm oil 120,000 tonnes).

III. Margins and Shipments