This week (as of Aug. 16th), edible palm oil stock totals 527,700 tonnes at domestic ports, down 5.1% from 556,300 tonnes last week and down 129,000 tonnes or 19.64% from 656,700 tonnes the same period last month, and up 61,700 tonnes or 13.2% from 466,000 tonnes the same period last year. Meanwhile, industrial palm oil stock at main domestic ports totals 114,300 tonnes, down 6,800 tonnes or 5.6% from 121,100 tonnes last week.

The edible palm oil stock falls for a four consecutive weeks due to a small amount of palm oil arrivals and the further expanding of price spread between soybean oil and palm oil. As of this Friday, the spread between palm oil and soybean oil has expanded by 82 yuan/tonne from 1263 yuan/tonne last week to 1345 yuan/tonne. With the buyers' purchase upon low prices the trading volume of palm oil this week is 71500 tonnes, up 58500 tonnes or 450% from 13000 tonnes last week. However, as some August cargoes are delayed to September the supply will then increase, and the destocking may stop and the stock is possible to pick up.

Fig.: China's palm oil stocks in recent years

According to the latest statistics by Cofeed, the estimate of import volume for August this week is down 30,000 tonnes from last week to settle at 620,000 tonnes (24-degree palm oil 500,000 tonnes and industrial palm oil 120,000 tonnes), and the estimate for Sept. this week is up 50,000 tonnes  from last week at 620,000 tonnes (24-degree 500,000 tonnes and  industrial palm oil 120,000 tonnes). The estimate of import volume for Oct. this week is down 50,000 tonnes from last week at 520,000 tonnes (24-degree palm oil 400,000 tonnes and industrial palm oil 120,000 tonnes).