Soybean Oil Stocks and Amounts in Outstanding Contracts in China (Week 10, 2019)
According to Cofeed, this week (as of Mar. 8th), details of soybean oil stock and amounts in outstanding contracts are as follows:
Unit: 0’000 tonne
Soybean oil inventory continues to increase this week for slow shipments since end buyers are not active in such a slack season for oils. As of March 8th, the inventory has totaled 1,360,300 tonnes, up 19,600 tonnes by 1.46% from 1,340,700 tonnes last week, up 50,000 tonnes by 3.82% from 1,310,300 tonnes month-on-month, yet down 29,700 tonnes by 2.14% from 1,390,000 tonnes year-on-year. And the five-year average at the same period is 1,045,060 tonnes.
Amid declining operation rate for swelling inventories of soybean meal and a lack of soybean, soybean crush this week (Mar. 2nd-8th) totals 1,581,800 tonnes (meal 1,249,622 tonnes and oil 300,542 tonnes), a reduction of 95,800 tonnes by 5.71% from 1,677,600 tonnes last week. Meanwhile, operation rate (capacity utilization) has gone down by 2.71 percentage points to 44.62% from 47.33% last week. Soybean crush will peg at 1.63 Mln tonnes and 1.62 Mln tonnes in the next two weeks respectively for pickups in operation rate. Soybean inventories will continue to rise in case of sustained tepid demand in the coming two weeks, but the rise will be slow on account of current operation rate.
Fig.: China’s Soybean Oil Stocks in Recent Years
