According to Cofeed, on the week as of July 3, details of soybean stocks and soybean meal stocks and outstanding contracts in coastal regions are as follows:

Soybean: Soybean stocks marginally reduce in coastal regions this week, as soybean crush hits an extremely high level of 2.04 mln tonnes. In the week as of July 3, China’s imported soybean stocks in coastal regions total 5,542,900 tonnes, down 105,100 tonnes by 1.86% from 5,648,000 tonnes last week yet up by 29.93% from 4,265,900 tonnes of the same period last year. Soybean stocks will gradually build up along with huge soybean arrivals between June and August.

Fig. 1: China’s coastal soybean carry-over stocks in recent years

Soybean meal: Soybean meal stocks keep increasing for an 11^th straight week this week, as oil mills have maintained high-level soybean crush. In the week ending July 3, China’s soybean meal stocks in coastal regions are 998,000 tonnes, up 33,300 tonnes by 3.45% from 964,700 tonnes last week and up by 7.92% from 924,700 tonnes of the corresponding period last year. Soybean crush is predicted to stay at around 2.06 mln tonnes next week, but downstream customers are vigorous in purchasing due to a rise in soybean meal prices, so soybean meal stocks will probably slow down the growth.

Fig. 2: China’s coastal soybean meal carry-over stocks in recent years

Outstanding contracts: The amount of soybean meal in outstanding contracts sharply increases this week, which spans from June to July. In the week as of July 3, outstanding contracts in mills in domestic coastal regions hold 6.193 mln tonnes not delivered, up 2,587,500 tonnes by 71.77% from 3,605,500 tonnes last week and up by 87.82%% from 3,297,300 tonnes of the same period last year.

Fig. 3: China’s coastal soybean meal in outstanding contracts in recent years