Cofeed News: edible palm oil at China’s ports this week ended July 27th climbs to 567,700 tonnes, a rise of 28,800 tonnes from 538,900 tonne last week, but contrasting with 611,300 tonnes the corresponding week last month, it is otherwise down 43,600 tonnes by 7.1%. Nonetheless, it is still up 208,800 tonnes by 58.2% as compared to 358,900 tonnes year on year. Whilst stocks of industrial palm oil are around 72,200 tonnes, down 12,000 tonnes by 14.3% from 84,200 tonnes attained last week.

    Due to increased palm oil arrivals in North China, East China and South China, palm oil piles up in stocks this week. In addition, price gap between soybean oil and palm oil is seen narrowed at 713 yuan/tonne this week, down 32 yuan/tonne from last week, yet turnover of palm oil on the domestic market this week is languishing as buyers maintain cautious about buying amid fragile oils fundamentals, in detail, traded volume of palm oil this week is merely 2,900 tonnes compared with 6,400 tonnes last week. As import profits increase, importers’ enthusiasm in goods buying is slightly ignited. On the point, imports in September are estimated to be around 0.5 Mln tonnes, if such, stockpiles of palm oil later will ramp up further.

                       Figure: Comparison of domestic palm oil stocks in recent years

    Estimated imports of palm oil are shown as follows: July: approximately 0.38-0.43 Mln tonnes (0.25-0.30 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil); August: 0.47-0.48 Mln tonnes (0.34-0.35 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil); September: 0.50 Mln tonnes (0.34 Mln tonnes of 24-degree palm oil, 0.16 Mln tonnes of industrial palm oil), all being unchanged from last estimates; October: 0.50 Mln tonnes (0.37 Mln tonnes of 24-degree palm oil, 0.13 Mln tonnes of industrial palm oil). Arrivals of palm oil may change with the market and shipping schedule, therefore information will be updated according to latest shipments and possible defaults.