Soybean: the operation rate sees a decline this week as more and more mills have to suspend operation for machine overhaul near the end of August. Consequently, imported soybeans in coastal main areas builds up into 6,964,900 tonnes the week ended Aug. 31st, up 222,200 tonnes over 6,742,700 tonnes last week by 3.29%, and up 19.18% from 5,805,000 tonnes year on year. Soybean stocks in mills will further pile up on grounds that machine overhaul is to continue next week with lowered operation rate.

    Soybean meal: soybean meal decreases in stocks after lowered soybean crush in mills, additionally, good turnover for its spots helps to consume the stocks-- about 651,500 tonnes traded in the week. Till Aug. 31st, total stocks in costal major areas are downsized from 1,223,400 tonnes to 1,188,000 tonnes, down 35,400 tonnes by 2.89%, yet still up 37.67% as compared to 862,900 tonnes year on year. On grounds that oilseed crush in next week is probably down to 1.75 Mln tonnes, soybean meal stocks are to come down further next week helped by elevated meal demand in aquaculture and poultry.

    Amid China-US trade tensions, oilseed crushers tend to take forward contracts for soybean purchases when their concerns prevail over unavailable soybean sources later. In this case, traded volume of soybean meal upon forward contracts settles at 618,700 tonnes in the week, and soybean meal amounts in outstanding contracts also seen a rise. Till Aug. 31st, amounts in coastal main areas to fulfill in contracts have grown to 5,298,600 tonnes, up 146,100 tonnes from 5,152,500 tones the prior week by 2.83%, and up 0.30% as compared to 5,283,200 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