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 15th, the inventory has totaled 1,381,400 tonnes, up 21,100 tonnes or 1.55% from 1,360,300 tonnes last week, up 71,100 tonnes or 5.43% from 1,310,300 tonnes month-on-month, yet down 18,600 tonnes or 1.33% from 1,400,000 tonnes year-on-year. And the five-year average at the same period is 1,057,200 tonnes. 

      Amid declining operation rate for swelling inventories of soybean meal, a lack of soybean and equipment maintenance, soybean crush this week (Mar. 9th-15th) totals 1,515,800 tonnes (meal 1,197,482 tonnes and oil 288,002 tonnes), a reduction of 66,000 tonnes or 4.17% from 1,581,800 tonnes last week. Meanwhile, operation rate (capacity utilization) has gone down by 1.86% to 42.76% from 44.62% last week.The operation rate next week will further slip due to the equipment maintenance in some oil mills and the crush will be 1.5 Mln tonnes. In the week after next the operation rate will rise again due to the machine restarts in some oil mills and the crush will be 1.7 Mln tonnes. In the next two weeks if the soybean oil demand doesn't improve, the stock will further increase. However, given the low operation rate in oil mills, the pace of stock increase will be slow. 

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