According to Cofeed, this week (as of Jan. 4th), details of soybean oil stock and amounts in outstanding contracts are as follows:
Unit: 0’000 tonne
Soybean oil stock continues to post a decline this week at a markedly pace. As of January 4th, the inventory of soybean oil totals 1,567,000 tonnes, down 61,400 tonnes by 3.77% from 1,628,400 tonnes last week, down 215,000 tonnes by 12.07% from 1,782,000 tonnes month-on-month, and down 81,600 tonnes by 4.95% from 1,648,600 tonnes year-on-year. And the mean of the same period in recent five years is 1,216,160 tonnes.
Operation rate has posted a sharp decline in soybean crush this week, for several oil mills have suspended or restricted their production after the shipment of soybean meal failed to keep up the stubbornly operation rate last week, in addition to machine maintenance in some mills. On this occasion, national soybean crush has come to 1,571,300 tonnes (meal 1,241,327 tonnes and oil 298,547 tonnes), a drop of 291,500 tonnes by 15.64% from 1,862,800 tonnes last week. Meanwhile, the operation rate (capacity utilization) has went down by 8.22 percentage points to 44.33% from 52.55% last week. Soybean crush will maintain at around 1.57 Mln tonnes as the stock pressure of soybean meal continues next week (week 2), and rise back to 1.75 Mln tonnes in week 3. Amid the stockpiles in the run up to the festival, soybean oil will extend its downward trend for some time.
Fig.: China’s Soybean Oil Stocks in Recent Years
