Despite lifted operating rate, most feed sectors slow down the pace of delivery, consequently, stockpiles of soybean meal this week continue to pile up with brimming inventory facilities in regions like North China and Shandong. Yet, stocks in these regions are a tad lower owing to machine halt, by contrast, soybean meal keep increasing in East China and South China with exceedingly high operating rate, putting considerable strain on its stocks. In addition, volumes in outstanding contracts are decreasing. Till December 24th, total stocks in costal major areas increase by 13.26% from 771,000 tonnes last week to 873,300 tonnes, with a rise of 102,300 tonnes, and the figure is 99.79% higher year on year than 437,100 tonnes attained last year. Meanwhile soybean meal amounts in outstanding contracts are lessened to 5.8338 Mln tonnes from 6.18798 Mln tonnes last week by 5.72% with a reduction of 354,180 Mln tonnes, yet it is still 29.72% higher than the same period last year of 4.497 Mln tonnes. On the whole, operating rate will keep at a relatively high level in the following two weeks even though buyers are not proactive in delivery, in this case, soybean meal will keep growing in stocks next week.

              Figure 1: Trend of Chinese coastal soybean carry-over stocks in recent years

             Figure 3: Trend of Chinese coastal soybean meal in outstanding contracts in recent years