I. National stocks

This week, the price spread between palm oil and soybean oil in China continues widening on account of less arrival of palm oil cargoes and better demand for palm oil. As of this Friday (Sept 18), the price spread sets at 695 CNY/tonne, extending by 27 CNY/tonne compared to 668 CNY/tonne last Friday. Besides, as oil spots and futures sharply rise at home and broad, some buyers make a purchase upon the low price. Accordingly, palm oil trading at low levels turns better this week, totaling 34,200 tonnes (11,200 tonnes for spot contract and 23,000 tonnes for forward contract), an increase of 10,650 tonnes or 45.2% versus 23,550 tonnes (11,550 tonnes for spot contract and 12,000 tonnes for forward contract) in the previous week. As a result, palm oil inventory this week falls again.

In the week ending September 18, edible palm oil stock totals 323,800 tonnes at nationwide ports, down by 4.1% from 337,500 tonnes a week earlier; down by 17,600 tonnes or 5.2% from 341,400 tonnes in the previous month; down by 235,050 tonnes or 42.06% from 558,850 tonnes the corresponding period last year. Meanwhile, industrial palm oil stock at domestic ports amounts to 112,100 tonnes, a drop of 1,800 tonnes or 1.6% from 113,900 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, flat from a week earlier; 620,000 tonnes in October (RBD palm olein 500,000 tonnes and industrial palm oil 120,000 tonnes), unchanged with last week. And palm oil imports in November are expected to be 620,000 tonnes (RBD palm olein 500,000 tonnes and industrial palm oil 120,000 tonnes), an increase of 50,000 tonnes from last week.

III. Margins and Shipments