Soybean: The inventory sees a decline this week amid another big pickup in crush to 1.93 mln tonnes, but the decline is small with ongoing arrivals of cargoes at ports. On the week as of May 17th, imported soybean inventory is 4,594,100 tonnes in main domestic coastal oil mills, down 107,900 tonnes by 2.29% from 4,702,000 tonnes last week and down by 10.90% from 5,156,300 tonnes of the same period last year. The inventory will be mounting higher with continuous shipments arriving at ports from May to July.
Fig. 1: China’s coastal soybean carry-over stocks in recent years
Soybean meal: The inventory has increased this week for its growing output under a sharp rally in soybean crush. On the week as of May 17th, soybean meal stockpiles in main domestic coastal oil mills total 616,600 tonnes, up 25,900 tonnes by 4.38% from 590,700 tonnes last week yet down by 46.44% from 1,151,300 tonnes of the corresponding period last year. While soybean crush is likely to hit above 1.90 mln tonnes in the next two weeks, downstream buyers will spend some time digesting their stockpiles; hence, soybean meal inventory is expected to continue to increase next week.
Fig. 2: China’s coastal soybean meal carry-over stocks in recent years
Outstanding contracts: Outstanding contracts of soybean meal in oil mills continue to see rises this week. On the week as of May 17th, contracts in domestic main areas hold 4,183,400 tonnes unfinished, up 36,100 tonnes by 0.87% from 4,147,300 tonnes last week yet markedly down by 31.08% from 6,070,100 tonnes of the same period last year.
Fig. 3: China’s coastal soybean meal in outstanding contracts in recent years
