Soybean Oil Stocks and Amounts in Outstanding Contracts in China (Week 23, 2020)
According to Cofeed, in the week as of June 5, details of soybean oil inventories and outstanding contracts in main domestic regions are as follows:
Soybean oil stocks continue a slight rise this week. In the week ending June 5, China’s soybean oil commercial inventory has totaled 949,470 tonnes, up 17,820 tonnes by 1.91% from 931,650 tonnes last week, up 124,470 tonnes by 15.09% from 825,000 tonnes last month, yet down 479,330 tonnes by 33.55% from 1,428,800 tonnes of the corresponding period last year. And the five-year average at the same period is 1,154,100 tonnes.
Operation rates continue dropping this week (May 30-June 5), as some mills are facing swelling soybean meal inventories or temporary soybean shortages. Soybean crush at domestic mills totals 1,915,550 tonnes (meal 1,513,285 tonnes and oil 363,955 tonnes), down 150,550 tonnes or 7.28% from 20661000 tonnes in the previous week. Meanwhile, operation rates (capacity utilization) are 55.17%, down 4.34% from 59.51% in the previous week. Soybean crush is predicted to snap off the decline to increase to 2.03 mln tonnes and 2.06 mln tonnes in the next two weeks, respectively. Hence, soybean oil stocks are expected to maintain the uptrend.
Fig.: China’s Soybean Oil Stocks in Recent Years
