Soybean: The inventory has slightly increased this week, as mills have started unloading soybean cargoes delayed by the typhoon in the previous week. On the week as of August 23rd, imported soybean inventory is 5,390,400 tonnes in main domestic coastal oil mills, up 353,800 tonnes by 7.02% from 5,036,600 tonnes last week yet down by 20.05% from 6,742,700 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: The inventory has continued decreasing this week on the better trading and quick delivery. The total trading is up by 33.15% at 1,245,400 tonnes as of this Friday since the futures market is strong and downstream buyers are active in stocking up for the Mid-autumn Festival. On the week as of August 23rd, soybean meal inventory in main domestic coastal oil mills totals 731,700 tonnes, down 110,400 tonnes by 13.11% from 842,100 tonnes last week and by 40.19% from 1,223,400 tonnes of the corresponding period last year. As soybean crush will increase to around 1.82 mln tonnes and 1.85 mln tonnes in the coming two weeks, soybean meal inventory is predicted to slow down its declines.

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

Outstanding contracts: The amount of soybean meal in outstanding contracts continues reducing this week. On the week as of August 23rd, outstanding contracts in domestic main areas hold 3,667,200 tonnes unfinished, down 198,100 tonnes by 5.13% from 3,865,300 tonnes last week and by 28.82% from 5,152,500 tonnes of the same period last year.

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