Soybean: afflicted by hot spell these days, some mills in Tianjin and Shandong have to suspend or limit production upon electricity rationing and production cut notice to ensure electricity utilization for people’s livelihood. In this way, soybean stocks continue to pile up at home this week ended on Aug. 10th factored in lowered operation rate but large soybean arrivals. In week 32, imported soybeans in China’s main coastal areas total 6,988,500 tonnes, up 328,200 tonnes by 4.92% from 6,660,300 tonnes in stocks last week, and also up 19.98% contrasting with 5,824,300 tonnes year on year. Generally, soybean rises in stocks may been seen eased if its crush resumes to 1.8 Mln tonnes or so after the end of electricity rationing this week.

    Soybean meal: soybean meal is further cut in stocks this week when its turnover goes better, for its rallying prices amid upward futures attract buyers to make proper replenishment. Till Aug. 10th, total stocks in costal major areas come into at 1,158,300 tonnes, down 58,200 tonnes by 4.78% from 1,216,500 tonnes last week, yet contrasting with 1,098,000 tonnes year on year, it is otherwise up 5.49%. In the event that large soybean meal traded needs time to consume amid rising oilseeds crushing in the next two weeks, soybean meal next week is expected to slow down its declines in stocks.

    Soybean meal amounts in outstanding contracts till Aug. 10th have edged up to 6,612,000 tonnes, slightly up 126,000 tonnes from 6,486,000 tonnes by 1.94%, and up 24.92% from 5,292,600 tonnes year on year. 

                         Figure 1: China’s coastal soybean carry-over stocks in recent years

                       Figure 2: Chin’s coastal soybean meal carry-over stocks in recent years

                  Figure 3: China’s coastal soybean meal in outstanding contracts in recent years