Soybean: The inventory has seen a slight decline this week due to its rising crush of 1.77 mln tonnes and small volume arriving at port at the beginning of a month. On the week as of June 7th, imported soybean inventory is 4,285,000 tonnes in main domestic coastal oil mills, down 61,800 tonnes by 1.42% from 4,346,800 tonnes last week and down by 28.72% from 6,011,900 tonnes of the same period last year. With ongoing arrivals of soybean at ports, the inventory likely continues to rise later.
Fig. 1: China’s coastal soybean carry-over stocks in recent years
Soybean meal: The utilization rate for soybean has fractionally recovered, but downstream buyers are not in a hurry to purchase due to the price falls after rises of meal futures on the Dalian Commodity Exchange and in soybean meal spot market. As of this Thursday, the trading volume is pegged at 576,900 tonnes, a decline of 25.16% from 770,800 tonnes last week, so the inventory continues to increase this week. On the week as of June 7th, soybean meal stockpiles in main domestic coastal oil mills total 736,100 tonnes, up 95,200 tonnes by 14.85% from 640,900 tonnes last week yet down by 30.41% from 1,057,900 tonnes a year earlier. The inventory will likely keep rising next week as downstream buyers are not busy purchasing, although soybean crush will fall to around 1.70 mln tonnes.
Fig. 2: China’s coastal soybean meal carry-over stocks in recent years
Outstanding contracts: The amount of soybean meal in outstanding contracts has increased this week. On the week as of June 7th, outstanding contracts in domestic main areas hold 4,151,200 tonnes unfinished, up 486,800 tonnes by 13.28% from 3,664,400 tonnes last week yet markedly down by 35.19% from 6,406,000 tonnes of the same period last year.
Fig. 3: China’s coastal soybean meal in outstanding contracts in recent years
