I. National stocks

In the week ending October 30^th, palm oil stocks in China pick up after decline, of which edible palm oil stock totals 409,000 tonnes at nationwide ports, up by 5.8% from 386,500 tonnes a week earlier; up 118,500 tonnes or 40.79% from 290,500 tonnes in the previous month; down 125,600 tonnes or 23.49% from 534,600 tonnes in the corresponding period last year. Meanwhile, industrial palm oil stock at domestic ports amounts to 99,300 tonnes, a decrease of 7,900 tonnes or 7.37% from 107,200 tonnes last week.

As of this Friday, the price spread of palm oil with soybean oil narrows by 32 CNY/tonne to 973 CNY/tonne, versus 1,005 CNY/tonne last Friday. But palm oil consumption slows down as oil futures on China’s Dalian Commodity Exchange fluctuate frequently and the weather gets colder, so buyers remain cautious. In this case, palm oil trading this week is tepid in market, totalling 13,750 tonnes. Additionally, market expects that China’s imports of RBD palm olein in November will be as high as 600,000 tonnes. It is predicted that palm oil stocks still carry the potential to recovery in later period.

II. Goods Arrivals

China is projected to bring in 800,000 tonnes of palm oil (RBD palm olein 650,000 tonnes and industrial palm oil 150,000 tonnes) in November, an increase of 50,000 tonnes from the estimate last week, according to the latest statistics by Cofeed. And palm oil imports in December are expected to be 700,000 tonnes (RBD palm olein 550,000 tonnes and industrial palm oil 150,000 tonnes).

III. Margins and Shipments