Unit: 0’000 tonnes

Area/Enterprise	Soybean Oil Stocks			Soybean Oil in Outstanding Contracts
	Week 23	Week22	Variation	Week 23	Week 22	Variation
Northeast China	4.5	4.05	0.45	7.6	6.4	1.2
North China	23.48	23.11	0.37	24.66	21.07	3.59
Shandong	10.05	11.48	-1.43	10.98	8.75	2.23
East China	46.67	45.82	0.85	36.62	38.12	-1.5
Guangdong	13.71	12.565	1.145	23.46	23.12	0.34
Guangxi	11.975	11.365	0.61	14.75	13.31	1.44
Fujian	8.1	7.5	0.6	3.1	4.55	-1.45
Henan	1.78	3.15	-1.37	1.29	1.065	0.225
Sichuan	3.48	3.55	-0.07	2.86	2.64	0.22
Others	11.72	11.39	0.33	1.59	1.58	0.01
Total	135.465	133.98	1.485	126.91	120.605	6.305

 

    Comments: soybean oil stocks continue to pile up this week , and according to Cofeed, soybean oil in China's business inventories till June 8th amounts to 1,354,650 tonnes, up 14,850 tonnes by 1.11% from 1,339,800 tonnes on the week, and up 46,650 tonnes by 3.57% from 1,308,000 tonnes on the month. Meantime as opposed to the same period a year earlier, it is up 119,650 tonnes by 9.69% from 1,235,000 tonnes, and on the very note, average stocks of soybean oil in recent five years are around 1,061,730 tonnes. National soybean crush this week comes into at 1,651,350 tonnes (1,304,566 tonnes of soybean meal, 313,756 tonnes of soybean oil) in the midst of lifted operation rate but sluggish demand for soybean oil in end users, generally up 22,250 tonnes by 1.36% vis-a-vis 1,629,100 tonnes last week. Soybean processing capacity utilization rises to 47.80%, 0.64 percentage points higher than 47.16% last week. That further contributes to a pile-up of soybean oil. 

 

    Total soybean crush in week 24, according to Cofeed, will probably rise to 1.83 Mln tonnes and 1.9 Mln tonnes in week 25 based on recovered operation in Shandong province one after another after SCO Summit (June 11th). Notably, 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