Cofeed News: edible palm oil at China’s ports this week ended Aug. 10th is further cut to 500,000 tonnes from 528,000 tonnes last week, about 28,000 tonnes lower, and contrasting with 573,800 tonnes the corresponding week last month (week 28), it is also down 73,800 tonnes by 12.9%. Nonetheless, it is otherwise up 216,200 tonnes by 76.2% as compared to 283,800 tonnes year on year. Whilst stocks of industrial palm oil are around 70,700 tonnes, up 6,500 tonnes by 10.1% from 64,200 tonnes attained last week.

    On account of fewer palm oil arrivals nationwide this week, edible palm oil is seen further curtailed in stocks, especially in East China and South China. In addition, price gap between soybean oil and palm oil is slightly narrowed at 760 yuan/tonne this week, down 18 yuan/tonne from last week’s 778 yuan/tonne. As such, turnover of palm oil domestically this week is fragile after buyers’ enthusiasm in buying is dampened by narrowed price up, in detail, traded volume of palm oil this week slips to 11,200 tonnes vis-a-vis 16,000 tonnes last week. Whereas, as palm oil arrivals on average during August-to-September period are estimated to be around 0.45-0.5 Mln tonnes, supply will be generally assured later and its stocks are probable to pile up.

                              Figure: Comparison of domestic palm oil stocks in recent years

    Estimated imports of palm oil are shown as follows: 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: 0.45-0.50 Mln tonnes (0.33-0.34 Mln tonnes of 24-degree palm oil, 0.12-0.16 Mln tonnes of industrial palm oil), down 0.03 Mln tonnes from last estimate; October: 0.40-0.50 Mln tonnes (0.33-0.37 Mln tonnes of 24-degree palm oil, 0.12-0.13 Mln tonnes of industrial palm oil), down 0.03 Mln tonnes from last estimate. Arrivals of palm oil may change with the market and shipping schedule, therefore information will be updated according to latest shipments and possible defaults.