According to Cofeed, the latest statistics of soybean oil stocks and amounts in outstanding contracts in Chinese major areas in week 30 ended on July 27th (hereinafter referred to this week) are shown as follows:
Unit: 0’000 tonnes
|
Area/Enterprise
|
Soybean Oil Stocks
|
Soybean Oil in
Outstanding Contracts
|
|
|
Week 30
|
Week 29
|
Variation
|
Week 30
|
Week 29
|
Variation
|
|
Northeast China
|
7.85
|
7.63
|
0.22
|
9.8
|
10
|
-0.2
|
|
North China
|
30.8
|
30.35
|
0.45
|
22.5
|
22.78
|
-0.28
|
|
Shandong
|
12.89
|
13.2
|
-0.31
|
12.44
|
12.068
|
0.372
|
|
East China
|
53.9
|
53.4
|
0.5
|
32.68
|
33.55
|
-0.87
|
|
Guangdong
|
16.07
|
14.01
|
2.06
|
26.1
|
26.05
|
0.05
|
|
Guangxi
|
13.63
|
13.51
|
0.12
|
12.75
|
13.2
|
-0.45
|
|
Fujian
|
10
|
9.68
|
0.32
|
4.8
|
2.95
|
1.85
|
|
Henan
|
3.258
|
3.31
|
-0.052
|
1.032
|
0.56
|
0.472
|
|
Sichuan
|
2.28
|
2.7
|
-0.42
|
2.7
|
3.16
|
-0.46
|
|
Others
|
8.37
|
8.58
|
-0.21
|
1.54
|
1.75
|
-0.21
|
|
Total
|
159.048
|
156.37
|
2.678
|
126.342
|
126.068
|
0.274
|
Comments: stockpiles of soybean oil are seen rising this week, and according to Cofeed, soybean oil in China's business inventories ended July 27th rises to 1,590,480 tonnes, up 26,780 tonnes by 1.71% from 1,563,700 tonnes last week, and vis-a-vis 1,493,400 tonnes the same week last month, it is up 97,080 tonnes by 6.5%. Meantime, it is also up 204,980 tonnes by 14.79% from 1,385,500 tonnes, and on the very note, average stocks of soybean oil in recent five years now come into at 1,271,416 tonnes.
Given pressure from meal-bloated mills is eased after oils subject to consecutive three-week declines in sessions, national soybean crush this week (July 21st- 27th) resumes to 1,671,350 tonnes, up 66,150 tonnes by 4.12% from 1,605,200 tonnes on the week (1,320,366 tonnes of soybean meal, 317,556 tonnes of soybean oil). in wake of improved operation rate. Meantime, soybean processing rate (capacity utilization) also rises to 48.38% from 46.47% last week, about 1.91 percentage points higher. Total soybean crush in week 31 next week, according to Cofeed, will probably come into at 1.74 Mln tonnes or so and 1.83 Mln tonnes in week 32 if operation rate further edges up.
Despite recovered operation rate in mills, oils turnover is still not satisfying when demand is slack and traders in midstream and downstream show little interest in buying. Additionally, slow goods delivery has resulted in deadly urgency, yet soybean oil this week actually piles up.
Figure: Comparison of domestic soybean oil stocks in recent years
