According to Cofeed, the latest statistics of soybean oil stocks and amounts in outstanding contracts in Chinese major areas in week 21 (till May 25th, hereinafter referred to this week) are shown as follows:
Unit: 0’000 tonnes
|
Area/Enterprise
|
Soybean Oil Stocks
|
Soybean Oil in Outstanding Contracts
|
|
|
Week 21
|
Week 20
|
Variation
|
Week 21
|
Week 20
|
Variation
|
|
Northeast China
|
3.56
|
3.05
|
0.51
|
6.1
|
6.35
|
-0.25
|
|
North China
|
23.28
|
23.55
|
-0.27
|
20.5
|
23.55
|
-3.05
|
|
Shandong
|
11.88
|
11.66
|
0.22
|
9.5
|
9.71
|
-0.21
|
|
East China
|
44.62
|
44.42
|
0.2
|
37.92
|
37.3
|
0.62
|
|
Guangdong
|
11.89
|
11.548
|
0.342
|
24.68
|
25.4
|
-0.72
|
|
Guangxi
|
11.865
|
12.065
|
-0.2
|
14.71
|
14.9
|
-0.19
|
|
Fujian
|
7.95
|
7.75
|
0.2
|
4.55
|
4.85
|
-0.3
|
|
Henan
|
2.875
|
2.925
|
-0.05
|
0.82
|
0.97
|
-0.15
|
|
Sichuan
|
3.45
|
3.25
|
0.2
|
2.76
|
3.08
|
-0.32
|
|
Others
|
10.63
|
10.6
|
0.03
|
1.18
|
5.35
|
-4.17
|
|
Total
|
132
|
130.818
|
1.182
|
122.72
|
131.46
|
-8.74
|
Comments: soybean oil stocks pile up further this week, and according to Cofeed, soybean oil in China's business inventories till May 25th amounts to 1,320,000 tonnes, up 11,820 tonnes by 0.9% from 1,308,180 tonnes on the week, and up 2,000 tonnes by 0.15% from 1,318,000 tonnes on the month. Meantime as opposed to the same period a year earlier, it is up 115,000 tonnes by 9.54% from 1,205,000 tonnes, and on the very note, average stocks of soybean oil in recent five years are around 1,008,000 tonnes.
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 on June 9th-11th. At the news, mills in Qingdao, Longkou and Rizhao, Shangdong province have recently increased processing capacity in full swing to ensure an ample supply of oils and meals later. Such being the case, therefore national soybean crush this week comes into at 1,650,450 tonnes (1,303,855 tonnes of soybean meal, 313,585 tonnes of soybean oil), up 68,000 tonnes by 4.29% vis-a-vis 1,582,450 tonnes last week. Meantime, soybean processing capacity utilization further rises to 47.78%, 1.97 percentage points higher than 45.81% last week.
Total soybean crush in week 22 nationwide, according to Cofeed, will be fractionally down to 1.63 Mln tonnes when part of Shandong mills are to suspend operation since late May, and further down to 1.55 Mln tonnes in week 23, the week after next. As a consequence, stocks cuts of soybean oil will be expected in the following two weeks.
Figure: Comparison of domestic soybean oil stocks in recent years
