According to Cofeed, in the week as of March 6th, details of soybean oil inventories and outstanding contracts in main domestic regions are as follows:

 

As operation rates decline for shortages this week (Feb. 29th-Mar. 6th), soybean crush at domestic mills totals 1,659,300 tonnes (meal 1,310,847 tonnes and oil 315,267 tonnes), down 267,900 tonnes or 13.9% from 1,927,200 tonnes in the previous week. Meanwhile, operation rates (capacity utilization) are 47.69%, down 7.69 percentage points from 55.38% in the previous week. As operation rates will continue the decline in the next two weeks for an increasing number of mills will suspend production for soybean shortages, soybean crush is predicted to be about 1.54 mln tonnes and 1.42 mln tonnes, respectively.

 

Albeit with a decline in operation rates, soybean oil stocks continue to grow as the demand remains dismal under the influence of the epidemic. In the week ending March 6th, China’s commercial inventory has totaled 1,399,550 tonnes, up 55,350 tonnes by 4.11% from 1,344,200 tonnes last week, up 527,550 tonnes by 60.5% from 872,000 tonnes last month, and up 49,550 tonnes by 3.47% from 1,350,000 tonnes of the corresponding period last year. And the five-year average at the same period is 1,179,560 tonnes. 

 

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