Soybean: The inventory continues to reduce on small volume into storage and an overall high crush of 1.85 mln tonnes (in spite of a slight decline). On the week as of May 24th, imported soybean inventory is 4,179,600 tonnes in main domestic coastal oil mills, down 414,500 tonnes by 9.02% from 4,594,100 tonnes last week and down by 22.18% from 5,370,900 tonnes of the same period last year. The inventory decline is likely to be smaller next week as the crush will continue to fall, and it may gradually edge up with large volume arriving at ports from May to July.
Fig. 1: China’s coastal soybean carry-over stocks in recent years
Soybean meal: The stockpiles have slightly declined for a cut in soybean crush. On the week as of May 24th, soybean meal stockpiles in main domestic coastal oil mills total 612,800 tonnes, down 3,800 tonnes by 0.62% from 616,600 tonnes last week and down by 46.99% from 1,156,100 tonnes of the corresponding period last year. While soybean crush is likely to fall to arounf 1.80 mln tonnes next week, soybean meal inventory is expected to remain little changed as downstream buyers are still digesting their replenishment.
Fig. 2: China’s coastal soybean meal carry-over stocks in recent years
Outstanding contracts: Outstanding contracts of soybean meal in oil mills fractionally reduce this week. On the week as of May 24th, contracts in domestic main areas hold 3,721,300 tonnes unfinished, down 462,100 tonnes by 11.05% from 4,183,400 tonnes last week and markedly down by 36.40% from 5,851,600 tonnes of the same period last year.
Fig. 3: China’s coastal soybean meal in outstanding contracts in recent years
