Comment: as operation rate this week remain low for the sake of SCO Summit, soybeans continue to pile up this week amid large imported soybean arrivals. In week 23 ended on June 8th, stocks of imported soybeans in China’s major coastal areas amount to 6,011,900 tonnes, up 215,400 tonnes by 3.71% vis-a-vis 5,796,500 tonnes attained last week, and up 19.63% as compared to 5,025,200 tonnes year on year. In general, soybean crush next week will recover to around 1.83 Mln tonnes, and then rises of soybean stockpiles will be slowed down.
Stockpiles of soybean meal otherwise are seen falling marginally this week given soybean meal production is downsized in wake of lowered soybean crush. Till June 8th, total stocks in costal major areas come in at 1,057,900 tonnes, down 42,700 tonnes by 3.88% from 1,100,600 tonnes last week, and as compared with 1,143,000 tonnes the prior year, stocks also decrease by 7.44%. Generally speaking, stockpiles of soybean meal will recover provided if soybean crush reaches1.83 Mln and 1.9 Mln tonnes in the following two weeks.
Soybean meal to fulfill in contracts drops down. Till June 8th, soybean meal amounts in outstanding contracts decrease to 6,406,000 tonnes form last week’ 6,774,500 tonnes, down 368,500 tonnes by 5.44%, but it still up 30.37% as opposed to 4,913,400 tonnes year on year.
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
