According to Cofeed, latest soybean oil stocks and amounts in outstanding contracts in China's major areas in week 32 ended on August 10th (hereinafter referred to this week) are shown as follows:

 

Unit: 0’000 tonnes

Area/Enterprise	Soybean Oil Stocks			Soybean Oil in  Outstanding Contracts
	Week 32	Week 31	Var.	Week 32	Week 31	Var.
Northeast China	6.8	7.6	-0.8	8.25	9	-0.75
North China	30.25	30.52	-0.27	22.25	21.05	1.2
Shandong	12.55	12.81	-0.26	12.287	11.09	1.197
East China	53.37	53.85	-0.48	30.61	32.98	-2.37
Guangdong	16.14	15.94	0.2	26.58	25.85	0.73
Guangxi	12.71	12.99	-0.28	14.5	13.95	0.55
Fujian	11	9.6	1.4	2.6	4.7	-2.1
Henan	3.13	3.06	0.07	0.5	0.48	0.02
Sichuan	4.13	2.96	1.17	2.23	2.49	-0.26
Others	9.6	9.28	0.32	1.91	2.04	-0.13
Total	159.68	158.61	1.07	121.717	123.63	-1.913

 

    Stricken by scorched heat 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. As such, national soybean crush this week (Aug. 3rd- 10th) is revised downward to 1,711,350 tonnes (1,351,966 tonnes of soybean meal, 325,156 tonnes of soybean oil), down 54,750 tonnes by 3.1% from 1,766,100 tonnes on the week. Meantime, soybean processing rate (capacity utilization) also slips from 51.12% to 49.54% on the week, about 1.58% percentage points lower. Total soybean crush in week 33 next week, according to Cofeed, will probably reach 1.80 Mln tonnes and even 1.90 Mln tonnes in week 34 for electricity rationing is to lift next week when Autumn comes. Therefore in the near future, soybean oil in stocks will pile up further in wake of improving operation rate.

 

                                          Figure: China’s Soybean Oil Stocks in Recent Years