According to Cofeed, this week (as of Mar. 22nd), details of soybean oil stock and amounts in outstanding contracts are as follows:
Unit: 0’000 tonne
Soybean oil inventory reverses to drop this week. As of March 22nd, the inventory has totaled 1,364,700 tonnes, down 16,700 tonnes by 1.21% from 1,381,400 tonnes last week, yet up 64,700 tonnes by 4.98% from 1,300,000 tonnes month-on-month, and down 45,300 tonnes by 3.21% from 1,410,000 tonnes year-on-year. And the five-year average at the same period is 1,060,450 tonnes.
Merely, amid recovery in operation rate, soybean crush this week (Mar. 16th-22nd) totals 1,609,750 tonnes (meal 1,271,702tonnes and oil 305,852 tonnes), an increment of 93,950 tonnes by 6.19% from 1,515,800 tonnes last week. Meanwhile, operation rate (capacity utilization) has gone up by 2.65 percentage points to 45.41%% from 42.76% last week. Most oil mills have resumed their production as soybean meal inventory has relieved its pressure entering the second half of March, so soybean crush will climb to 1.71 Mln tonnes and 1.75 Mln tonnes respectively in the coming two weeks. Moreover, successive losses of futures have dampened?buyers’ enthusiasm in purchasing, which finally results in weak end demand and slower consumption. Therefore, soybean oil inventory is predicted to pick up later.
Fig.: China’s Soybean Oil Stocks in Recent Years
