Cofeed News: edible palm oil at China’s ports this week ended Aug. 31st amounts to 430,900 tonnes, up 27,500 tonnes from 403,400 tonnes last week, and up 59,300 tonnes from 371,600 tonnes year on year by 15.9%. Nonetheless, contrasting with 557,800 tonnes the corresponding week last month (week 31), it is still down 126,900 tonnes by 22.8%. Whilst stocks of industrial palm oil come into at 71,600 tonnes, about 1,600 tonnes and 2.2% below 73,200 tonnes attained last week.

    With merely 8,200 tonnes traded versus 9,100 tonnes last week, lackluster turnover of palm oil this week suggests buyers little interest in market purchases, in this way, edible palm oil builds up into 430,900 tonnes in stocks amid increasing goods arrivals this week. Yet as some shipments scheduled in August is delayed to September, estimated imports of palm oil in September are now around 0.45-0.50 Mln tonnes (0.33-0.35 Mln tonnes of 24-degree palm oil, 0.12-0.16 Mln tonnes of industrial palm oil). while attracted by improved import margins, new purchases of palm oil will continue in the near term, now totaling 0.18 Mln tonnes in volume with most shipments in October and November. And during October-and-November period, alternative palm oil for soybean oil is to be scaled back, if such, supply of palm oil will be generally assured and stockpiles will pile up.

                                         Figure: China’s palm oil stocks in recent years

    Estimated imports of palm oil are shown as follows: August: 0.37 Mln tonnes (0.25 Mln tonnes of 24-degree palm oil, 0.12 Mln tonnes of industrial palm oil), down 0.05 Mln tonnes from last estimate due to delayed shipments; September: 0.45-0.51 Mln tonnes (0.33-0.35 Mln tonnes of 24-degree palm oil, 0.12-0.16 Mln tonnes of industrial palm oil); October: 0.50-0.52 Mln tonnes (0.38-0.40 Mln tonnes of 24-degree palm oil, 0.12 Mln tonnes of industrial palm oil); November: 0.47 Mln tonnes (0.35 Mln tonnes of 24-degree palm oil, 0.12 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.