According to Cofeed, on the week as of October 25th, details of soybean oil inventories and outstanding contracts are as follows:

 

Soybean oil stocks continue to decline this week on a quickening delivery pace with strong trading after the National Day holiday and on the rare scenario where the market was trading well for eight sessions in row. In the week as of Oct. 25th, China’s commercial inventory has totaled 1,314,450 tonnes, down 27,020 tonnes by 2.01% from 1,341,470 tonnes last week, down 34,550 tonnes by 2.56% from 1,349,000 tonnes last month, and down 542,550 tonnes by 29.22% from 1,857,000 tonnes of the corresponding period last year. And the five-year average at the same period is 1,358,000 tonnes.

 

Some soybean imports now are for state reserves, instead of for mills, so some mills may have to suspend production due to a lack of commercial soybeans late this month and early November. Soybean crush is predicted to decline slightly to around 1.67 mln tonnes next week, and to return to 1.77 mln tonnes that following week. During this period, soybean oil stocks are predicted to fall further. 

 

Fig.: China’s Soybean Oil Stocks in Recent Years