YOGYAKARTA, Indonesia, June 3 (Reuters) - China, the No.2 buyer of vegetable oils, will order more palm oil cargoes from July onwards to stock up for its holiday season starting in September, traders said on Thursday. China tends to build up stocks two to three months ahead of festivals and this year the Mid-Autumn festival falls on the third week of September and National Day holiday stretches over the first week of October.
For now, China has slowed purchases as palm oil stocks at ports range between 500,000-700,000 tonnes compared to the usual 350,000-400,000 tonnes, said Southeast Asian and Chinese traders attending a palm oil conference in Indonesia. In July last year, stocks hit 600,000 tonnes.
Chinese traders this week bought refined, bleached and deodorised (RBD) palm olein at $805-$810 a tonne, cost and freight (C&F), dealers said. The product is processed into cooking oil and used for manufacturing noodles and sweets.
China buys the bulk of its palm oil cargoes from Malaysia, the second largest palm oil producer in the world, although it has increasingly made purchases from Indonesia.
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