Comment: stockpiles of soybeans further pile up after gradual arrivals of imported soybeans despite climbing operation rate. In week 25 ended on June 22nd, stocks of imported soybeans in China’s major coastal areas total 6,231,100 tonnes vis-a-vis 6,141,200 tonnes, up 89,900 tonnes by 1.46% on the week, and up 15.90% as compared to 5,239,900 tonnes year on year. In general, growing pace of soybean stockpiles will be slowed down later on condition of rising operation rate. 

   

    Albeit soybean meal spots rise substantially attributed to ongoing trade conflict, turnover is still light when businesses in the downstream maintain cautious about high bids. Stockpiles of soybean meal are further accumulating this week amid increasing soybean crush recently. Till June 22nd, total stocks in costal major areas are pegged at 1,238,200 tonnes compared with 1,122,200 tonnes last week, with a rise of 116,000 tonnes by 10.33%, and as compared to 1,203,900 tonnes the prior year, it is up 2.77%. Generally speaking, stockpiles of soybean meal are to pile up provided if soybean crush increases in the following two weeks.

    Soybean meal to fulfill in contracts continues to edge down. Till June 22nd, soybean meal amounts in outstanding contracts are down to 5,608,900 tonnes from 6,313,800 tonnes on the week, down 704,900 tonnes by 11.16%, but it still up 25.46% vis-a-vis 4,180,600 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