According to Cofeed, latest soybean oil stocks and amounts in outstanding contracts in China's major areas in week 36 ended Sept. 7th (hereinafter referred to this week) are shown as follows:
Unit: 0’000 T
The operation rate goes further down this week (Sept 1st- 7th) as more and more mills suspend operation for machine overhaul. Consequently, national soybean crush shrinks to 1,702,300 tonnes (1,344,817 tonnes of soybean meal, 323,437 tonnes of soybean oil), which sees a reduction of 156,110 tonnes or 8.4% from 1,858,410 tonnes attained last week. Meantime, soybean processing rate (capacity utilization) also drops to 48.73% from 53.20% on the week, about 4.47 percentage points lower. Total soybean crush, according to Cofeed, will probably settle at 1.87 Mln tonnes in week 36 next week and at 1.91 Mln tonnes in week 37 provided if some mills restart operation next week.
Soybean oil this week fall further in stocks and according to Cofeed, soybean oil in China's business inventories till Sept. 7th is trimmed from 1,627,500 tonnes to 1,590,900 tonnes, about 36,600 tonnes and 2.25% lower by contrast. Whereas, it is up 1,400 tonnes from 1,589,500 tonnes the same week last month (week 32) by 0.09%, and up 2225,900 tonnes vis-a-vis 1,365,000 tonnes by 16.55%. In this way, average stocks of soybean oil in recent five years now settle at 1,305,880 tonnes.
Operation rate in oil mills keeps going down, followed by soybean oil output to decrease further. In addition, under the ongoing stockpiling for packing oil, decent oil demands at lows lead to good traded volumes, especially on far-month basis. According to Cofeed, traded volumes in domestic main factories this week are 134,800 tonnes, with a daily average of 26,960 tonnes; by contrast, it was 149,500 tonnes last week, averaging at 29,900 tonnes. This week, large amounts of contracts have been signed, leaving an accumulative volume of 1.3596 Mln tonnes unfinished, against 1.294 Mln tonnes last week.
Figure: China’s Soybean Oil Stocks in Recent Years
