- Bloomberg reported that palm oil inventory at the major ports in China rose by 6% from 500,000 tonnes a month earlier to 530,000 tonnes last week. In spite of the increase, we believe that the level of palm oil inventory is still low.

- The highest level of palm oil inventory achieved this year was 1.2mil tonnes each on 21 February and 23 May. The lowest level of palm oil inventory was 500,000 tonnes.

- China reported that its palm oil imports fell by 16.3% YoY in November 2014. From January to November 2014, the country’s imports of palm oil declined by 11.5% compared with the same period in 2013.

- In contrast, China’s soybean imports climbed by 12.3% YoY in the eleven months of the year. The country’s imports of soybean oil inched up by 2.5% YoY in the period of January to November 2014.

- Platts reported that spreads of soybean oil and CPO over gasoil hit their highest points last week since July 2013. Platts said that premiums over gasoil in Europe are expected to continue due to faltering gas prices.

- In Asia, the spot biodiesel market has come to a standstill as the break-even point for producers is not attractive. Sources said that although mandates are present in some countries such as Indonesia and Malaysia, the lack of a discretionary outlet has brought marginal production to a halt.

- Oil World said that several soybean areas in Argentina and Brazil have been very dry. However as the planting season is still early, a change in weather may improve conditions. As such, Oil World is keeping its 2015F forecast of Argentine soybean production of 54mil tonnes for now.

- Independent cargo surveyors reported that Malaysia’s palm oil shipments declined by 1.4% to 2.3% in the 25 days of December 2014 compared with the same period in November. China’s imports fell by 34.2% while exports to India and European Union surged by 26.0% and 38.4% respectively.

Source: AmeSecurities