According to Cofeed, this week (as of Dec. 7th), details of soybean oil stock and amounts in outstanding contracts are as follows:
Unit: 0’000 tonne
This week (Dec. 1st-7th), the market has been muted as most downstream companies tend to wait-and-see amid continuous declines of meal futures on the Dalian Commodity Exchange so that an increasing amount of oil mills have had to restrict or stop their production under slow consumption of soybean meal. Under continuous drop of operation rate, soybean crush volume totals 1,669,000 tonnes (meal 1,318,510 tonnes and oil 317,110 tonnes) this week, down 21,000 tonnes by 1.24% from 1,690,000 tonnes last week. The operation rate (capability utilization) is 47.65%, down by 0.6% from 48.25% last week. The crush volume will drop to around 1.62 Mln tonnes due to continuous production restriction or suspension next week (week 50) , but it will rise back to around 1.70 Mln tonnes in week 51.
Soybean oil stock continues to reduce this week, for its output has decreased further with the drop in operation rate. As of December 7th, the inventory of soybean oil totals 1,748,700 tonnes, down 36,300 tonnes by 2.03% from 1,785,000 tonnes last week, down 92,500 tonnes by 5.02% from 1,841,200 tonnes month-on-month, yet up 58,700 tonnes by 3.47% from 1,690,000 tonnes year-on-year. And the mean of the same period in recent five years is 1,326,000 tonnes.
Fig.: China’s Soybean Oil Stocks in Recent Years
