Soybean: The inventory has slightly increased amid a low-level crush of 1.52 mln tonne, as the overall utilization rate has just picked up fractionally due to swelling soybean meal inventories. On the week as of July 12th, imported soybean inventory is 4,270,400 tonnes in main domestic coastal oil mills, up 4,500 tonnes by 0.11% from 4,265,900 tonnes last week yet down by 34.23% from 6,493,000 tonnes of the same period last year. As soybean import estimate is pegged at a high level of 28 mln tonnes in the third quarter, its inventory is likely to climb higher later.
Fig. 1: China’s coastal soybean carry-over stocks in recent years
Soybean meal: The inventory reverses to decline slightly this week, as the trading volume has increased by 162.65% weekly to 788,100 tonnes from 300,100 tonnes ending this Friday. On the week as of July 12th, soybean meal stockpiles in main domestic coastal oil mills total 912,900 tonnes, down 11,800 tonnes by 1.28% from 924,700 tonnes last week and down by 27.14% from 1,253,100 tonnes a year earlier. As the crush will fall to around 1.48 mln tonnes, soybean meal inventory is predicted to pose minor reduction next week.
Fig. 2: China’s coastal soybean meal carry-over stocks in recent years
Outstanding contracts: The amount of soybean meal in outstanding contracts continues to increase this week. On the week as of July 12th, outstanding contracts in domestic main areas hold 3,450,300 tonnes unfinished, up 153,000 tonnes by 4.64% from 3,297,300 tonnes last week yet markedly down by 44.44% from 6,211,000 tonnes of the same period last year.
Fig. 3: China’s coastal soybean meal in outstanding contracts in recent years
