According to Cofeed, in the week as of June 26, details of soybean oil inventories and outstanding contracts in main domestic regions are as follows:

Soybean oil stocks continue the growth this week. In the week ending June 26, China’s soybean oil commercial inventory has totaled 1,122,480 tonnes, up 84,930 tonnes by 8.19% from 1,037,550 tonnes last week, up 222,480 tonnes by 24.72% from 900,000 tonnes last month, yet down 357,520 tonnes by 24.16% from 1,480,000 tonnes of the corresponding period last year. And the five-year average at the same period is 1,263,400 tonnes. 

Oil mills have slightly lowered down operation rates this week (June 20-26), as some of them are facing swelling soybean meal inventories, especially those in east China. Soybean crush at domestic mills totals 2,031,000 tonnes (meal 1,604,490 tonnes and oil 385,890 tonnes), down 107,200 tonnes or 5.01% from 2,138,200 tonnes in the previous week. Meanwhile, operation rates (capacity utilization) are 58.50%, down 3.08% from 61.58% in the previous week. Soybean crush is predicted to be around 2.05 mln tonnes and 2.08 mln tonnes in the next two weeks, respectively. All oil mills are seeking to work at full capacity and to speed up deliveries, unless disrupted by swelling stockpiles. Hence, soybean oil stocks are expected to maintain the uptrend.

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