Comment: albeit soybean crush this week climbs thanks to larger soybean arrival, total crush is still not surprisingly large, consequently, soybeans continue to pile up. Till May 25th, stocks of imported soybeans in China’s major coastal areas amount to 5,370,900 tonnes, further up 214,600 tonnes by 4.16% from 5,156,300 tonnes on the week, and up 6.11% from 5,061,700 tonnes vis-a-vis the same week year on year. In general, soybean would further pile up in stockpiles based on large soybean arrivals under way.

    Though soybean meal production is improved in wake of lifted operation rate this week, buyers’ inclination to replenish upon bargain hunting amid good demand in end users contributes to a pronounced turnover, such being the case, stockpiles of soybean meal do not change a lot. Till May 25th, total stocks in costal major areas come in at 1,156,100 tonnes, slightly up 48,00 tonnes by 0.41% from 1,151,300 tonnes last week, and compared with 1,086,300 tonnes a year ago, stocks are also up 6.42%. According to Chinese government, mills away from Qingdao within 200 kilometers are required to close down from May 30th to June 11th due to the upcoming summit for Shanghai Cooperation Organization in Qingdao in June. At the news, most mills in Shangdong province have to suspend operation, that is to say, stockpiles of soybean meal are to be lowered if operation rate declines in the following two weeks.

    Till May 25th, soybean meal amounts in outstanding contracts further decrease to 5,851,600 tonnes, down 218,500 tonnes by 3.60% as compared with 6,070,100 tonnes attained last week, while still up 55.27% as opposed to 3,768,500 tonnes on a year-on-year basis. 

                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