According to Cofeed, on the week as of January 10th, details of soybean oil inventories and outstanding contracts are as follows:

 

The operation rates for soybean crush are still being pegged at a high level this week (Jan. 4-10). The crush at domestic mills totals 2,040,100 tonnes (meal 1,611,679 tonnes and oil 387,619 tonnes), up 39,600 tonnes or 1.97% from 2,000,500 tonnes in the previous week. Meanwhile, operation rates (capacity utilization) reach 58.22%, up 1.44 percentage points from 56.78% in the previous week. Soybean crush is predicted to fall to around 1.92 mln tonnes next week, and sharply to around 920,000 tonnes that following week as mills will close for the Spring Festival. 

 

In spite of a further rise in operation rates, soybean oil stocks sharply decline this week, as buyers have quickened the delivery and some mills even have difficulty making shipment. In the week as of Jan. 10th, China’s commercial inventory has totaled 877,500 tonnes, down 47,000 tonnes by 5.08% from 924,500 tonnes last week, down 94,500 tonnes by 9.72% from 972,000 tonnes last month, and down 634,500 tonnes by 41.96% from 1,512,000 tonnes of the corresponding period last year. And the five-year average at the same period is 1,155,000 tonnes. 

 

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