Soybean: Soybean stockpiles have reduced slightly due to small quantity put into the warehouses. On the week as of June 28th, imported soybean inventory is 4,055,600 tonnes in main domestic coastal oil mills, down 424,600 tonnes by 5.07% from 4,480,200 tonnes last week and down by 35.58% from 6,295,600 tonnes of the same period last year. The crush will fall sharply to 1.53 mln tonnes next week, and with ongoing arrivals of soybean at ports in the third quarter, the inventory likely continues to rise later.
Fig. 1: China’s coastal soybean carry-over stocks in recent years
Soybean meal: The market is in light trading, although the trading volume is a little higher than last week. As of this Friday, the total trading volume is pegged at 502,900 tonnes, a rise of 8.75% from 462,400 tonnes last week, yet a decline of 33.73% from 758,900 tonnes a year earlier, so the inventory also continues to rise on weak trade. On the week as of June 28th, soybean meal stockpiles in main domestic coastal oil mills total 895,000 tonnes, up 42,200 tonnes by 4.95% from 852,800 tonnes last week yet down by 27.77% from 1,239,100 tonnes a year earlier. Amid such a growing trend, several mills in Shandong and Guangxi have been confronted with swelling inventories. As the crush will fall sharply to 1.53 mln tonnes next week, soybean meal inventory is predicted to slow down its growth on reduced output.
Fig. 2: China’s coastal soybean meal carry-over stocks in recent years
Outstanding contracts: The amount of soybean meal in outstanding contracts continue to reduce this week. On the week as of June 28th, outstanding contracts in domestic main areas hold 2,831,600 tonnes unfinished, down 236,600 tonnes by 7.71% from 3,064,300 tonnes last week and markedly down by 45.52% from 5,197,700 tonnes of the same period last year.
Fig. 3: China’s coastal soybean meal in outstanding contracts in recent years
