According to Cofeed, the latest statistics of soybean oil stocks and amounts in outstanding contracts in Chinese major areas in week 22 (till June 1st, hereinafter referred to this week) are shown as follows:
Unit: 0’000 tonnes
|
Area/Enterprise
|
Soybean Oil Stocks
|
Soybean Oil in Outstanding Contracts
|
|
|
Week 22
|
Week 21
|
Variation
|
Week 22
|
Week 21
|
Variation
|
|
Northeast China
|
4.05
|
3.56
|
0.49
|
6.4
|
6.1
|
0.3
|
|
North China
|
23.11
|
23.28
|
-0.17
|
21.07
|
20.5
|
0.57
|
|
Shandong
|
11.48
|
11.88
|
-0.4
|
8.75
|
9.5
|
-0.75
|
|
East China
|
45.82
|
44.62
|
1.2
|
38.12
|
37.92
|
0.2
|
|
Guangdong
|
12.565
|
11.89
|
0.675
|
23.12
|
24.68
|
-1.56
|
|
Guangxi
|
11.365
|
11.865
|
-0.5
|
13.31
|
14.71
|
-1.4
|
|
Fujian
|
7.5
|
7.95
|
-0.45
|
4.55
|
4.55
|
0
|
|
Henan
|
3.15
|
2.875
|
0.275
|
1.065
|
0.82
|
0.245
|
|
Sichuan
|
3.55
|
3.45
|
0.1
|
2.64
|
2.76
|
-0.12
|
|
Others
|
11.39
|
10.63
|
0.76
|
1.58
|
1.18
|
0.4
|
|
Total
|
133.98
|
132
|
1.98
|
120.605
|
122.72
|
-2.115
|
Comments: soybean oil stocks continue to rise this week for sluggish demand earlier delays shipments in mills, and according to Cofeed, soybean oil in China's business inventories till June 1st amounts to 1,339,800 tonnes, up 19,800 tonnes by 0.015% from 1,320,000 tonnes on the week, and up 44,800 tonnes by 3.46% from 1,295,000 tonnes on the month. Meantime as opposed to the same period a year earlier, it is up 109,800 tonnes by 8.93% from 1,230,000 tonnes, and on the very note, average stocks of soybean oil in recent five years are around 1,033,190 tonnes.
With Shanghai Cooperation Organization (SCO) Summit to be held in Qingdao in June, most mills in Shandong province now suspend operation during May 30th and June 11th period, therefore national soybean crush this week is pegged at 1,629,100 tonnes (1,286,989 tonnes of soybean meal, 309,529 tonnes of soybean oil) in the midst of lowered operation rate nationwide this week, basically down 21,350 tonnes by 1.28% vis-a-vis 1,650,450 tonnes last week. Meantime, soybean processing capacity utilization falls to 47.16%, 0.72 percentage points lower than 47.78% last week. Total soybean crush in week 23 next week, according to Cofeed, will probably stay at 1.64 Mln tonnes based on basically unchanged operation rate, whereas total crush will again climb to as high as 1.84 Mln tonnes in week 24 when mills are to resume operation after the SCO Summit. Whereas, supply pressure on oils later will be further enlarged if demand for soybean oil is not improved.
Figure: Comparison of domestic soybean oil stocks in recent years
