I. National stocks

Edible palm oil stocks in China sharply increase this week, mainly due to the subdued trading in market and arrivals of palm oil boatloads at some ports during Spring Festival holidays. In the week ending Feb 19, edible palm oil stocks in China total 674,500 tonnes at nationwide ports, up 8.9% from 619,300 tonnes on Feb 5; up 60,300 tonnes or 9.8% from 614,200 tonnes in the previous month; down 164,600 tonnes or 19.62% from 839,100 tonnes in the corresponding period last year. In the same period in former years, palm oil inventories were 765,800 tonnes in 2019, 624,300 tonnes in 2018 and 574,800 tonnes in 2017. On an average from 2016-2020, palm oil stocks reached 695,700 tonnes. Additionally, industrial palm oil stock at domestic ports amounts to 123,300 tonnes, a rise of 3,900 tonnes or 3.3% versus 119,400 tonnes in the previous week. However, palm oil stocks are projected to slow the rises amid limited imports in February.

II. Goods Arrivals

China is projected to bring in 400,000 tonnes of palm oil (RBD palm olein 250,000 tonnes and industrial palm oil 150,000 tonnes) in February, according to the latest statistics by Cofeed. And palm oil imports in March are expected to be 400,000 tonnes (RBD palm olein 250,000 tonnes and industrial palm oil 150,000 tonnes). Both are unchanged from the estimate on Feb 5.

III. Margins and Shipments