Soybeans and Soybean Meal Stocks and Contracts Weekly (Week 2, 2018)

2018-01-16 www.cofeed.com

Comments: soybean arrivals are seen rising this week though operation rate is a tad lower, consequently, stocks of imported soybean in China’s major coastal areas till January 14th (week 2 of year 2018) pile up, in detail, weekly stocks grow by 8.30% from 4,274,300 tonnes last week to 4,629,400 tonnes, with a rise of 355,100 tonnes, and the figure is still 32.34% higher than 3,497,900 tonnes year on year. Operating rate next week will be lifted in the wake of large soybean arrivals, but soybean stocks are likely to edge lower next week.

Affected by recovered operating rate and sluggish future market amid caution in buying among buyers in the downstream, stocks of soybean meal this week are increasing though its volume in outstanding contracts is narrowed. Till January 14th, total stocks in costal major areas settle at 967,500 tonnes on the week, up 10.59% or 92,700 tonnes from 874,800 tonnes a week ago, and it is 36.53% higher than 708,600 tonnes year on year. Meanwhile soybean meal amounts in outstanding contracts are shriveled to 6,175,200 tonnes from 6,492,300 tonnes last week with 4.88% or 313,700 tonnes less, whereas, it is 36.02% higher than the same period last year of 4,539,600 tonnes. On the whole, operating rate will be lifted in the following two weeks, and soybean meal stocks will therefore keep on a slight growth in next week.

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

Figure 2: Trend of Chinese coastal soybean meal carry-over stocks in recent years

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

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