Unit: 0’000 tonne

     This week (22nd-28th Sept), soybean operation rate goes on to increase as oil mills work hard to keep pace with the delivery speed of downstream companies before China’s National Day. The crush volume of soybean in domestic oil mills totals 1,994,800 tonnes (soybean meal 1,575,892 tonnes and soybean oil 379,012 tonnes), an increase of 51,300 tonnes by 2.63% from 1,943,500 tonnes last week. And the operation rate (capacity utilization) is 56.97%, up by 1.33%% from 55.64% last week. Operation rate may plummet in the next two weeks due to the holiday, with the crush volume falling back to around 1.72 Mln tonnes next week (Week 40) and to 1.70 Mln tonnes in Week 41.

     This week soybean oil stock moves to a fresh record and burdens heavy supply pressure due to its large output under high operation rate in oil mills. As of 28th Sept, the business inventory of domestic soybean oil amounts to 1,708,800 tonnes, up 54,900 tonnes by 3.32% from 1,653,900 tonnes last week, up 66,500 tonnes by 4.05% from 1,642,300 tonnes during the same period last month, and up 270,000 tonnes by 18.77% from 1,438,800 tonnes during the same period last year. Stock of the same period in the recent five years averages at 1,325,760 tonnes.

      Fig.: China’s Soybean Oil Stocks in Recent Years