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China's imports of palm oil are likely to hit a fresh record of about 700,000 tonnes in August after July imports of 670,000 tonnes, which would swell stockpiles now at about 500,000 tonnes, the China National Grain & Oils Information Center said. September imports were also seen staying at a high level, the center said in a report, but gave no estimate for September.
A price advantage against soyaoil has driven China's imports of the cheapest vegetable oil, which is blended with soyaoil and other vegetable oils to make cooking oil. China's imports of palm oil in the first seven months rose 9.8 percent to 3.47 million tonnes. High imports of palm oil coupled with increases of soyaoil and soyabean imports had capped domestic prices of cooking oils, whose prices have not risen significantly ahead of the peak consuming season.

Copyright Reuters, 2009

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