Soybean: The inventory continues to reduce this week as mills just put a small quantity into storage. On the week as of August 16th, imported soybean inventory is 5,036,600 tonnes in main domestic coastal oil mills, down 460,600 tonnes by 8.06% from 5,497,200 tonnes last week and down by 28.98% from 7,092,000 tonnes of the same period last year. As soybean import estimate is pegged at a high level in August and September, its supply will be not a problem for the moment. 

Fig. 1: China’s coastal soybean carry-over stocks in recent years

Soybean meal: Soybean meal inventory reduces fractionally this week on a further decline in soybean crush. On the week as of August 16th, soybean meal stockpiles in main domestic coastal oil mills total 842,100 tonnes, down 16,900 tonnes by 1.97% from 859,000 tonnes last week and by 33.37% from 1,264,000 tonnes of the corresponding period last year. As the crush will stay at relatively low levels of around 1.62 mln tonnes and 1.68 mln tonnes in the coming two weeks, soybean meal inventory is predicted to decrease slightly.

Fig. 2: China’s coastal soybean meal carry-over stocks in recent years

Outstanding contracts: The amount of soybean meal in outstanding contracts decreases this week. On the week as of August 16th, outstanding contracts in domestic main areas hold 3,865,300 tonnes unfinished, down 363,400 tonnes by 8.60% from 4,228,800 tonnes last week and markedly down by 34.74% from 5,923,600 tonnes of the same period last year.

Fig. 3: China’s coastal soybean meal in outstanding contracts in recent years