According to Cofeed, on the week as of July 5th, details of soybean oil inventories and outstanding contracts are as follows:
Unit: 0’000 tonne
This week (June 29th-July 5th), almost all mills have halted for steam problems at port in Tianjin, and some mills, especially in Guangdong, Jiangsu and southwestern regions, have to cut down production or halt for their swelling soybean meal or oil inventories, so utilization rate continues to drop at a large pace. Soybean crush totals 1,412,800 tonnes (meal 1,116,112 tonnes and oil 268,432 tonnes), a reduction of 318,000 tonnes by 18.37% from 1,730,800 tonnes last week. Meanwhile, utilization rate (capacity utilization) is 39.54%, down by 8.9 percentage points from 48.44% last week. The crush is predicted to go up slightly to around 1.54 mln tonnes next week, and to around 1.62 mln tonnes the following week.
And soybean oil inventory has thus declined substantially this week. On the week as of July 5th, the inventory has totaled 1,437,000 tonnes, down 46,350 tonnes by 3.12% from 1,483,350 tonnes last week, up 8,200 tonnes by 0.57% from 1,428,800 tonnes month-on-month, and down 93,000 tonnes by 6.08% from 1,530,000 tonnes year-on-year. And the five-year average at the same period is 1,241,400 tonnes.
Fig.: China’s Soybean Oil Stocks in Recent Years
