According to Cofeed, in the week as of August 21, details of soybean oil inventories and outstanding contracts in main domestic regions are as follows:

Following a pickup in operation rates this week (Aug 15-21), soybean crush at domestic mills totals 2,017,000 tonnes (meal 1,593,430 tonnes and oil 383,230 tonnes), up 51,200 tonnes or 2.6% from 1,965,800 tonnes last week. Meanwhile, operation rates (capacity utilization) are 58.09%, up 1.47% from 56.62% in the previous week. Soybean crush is predicted to increase to around 2.02 mln tonnes and 2.05 mln tonnes in the coming two weeks, respectively. The crush is likely to go lower than the forecast as some mills may suspend or cut production under swelling meal inventories.

Soybean oil inventories rally this week following a rise in the crush and the unloading of crude soybean oil at ports. In the week ending Aug 21, China’s soybean oil commercial inventories total 1,259,950 tonnes, up 33,100 tonnes by 2.7% from 1,226,850 tonnes last week, up 44,950 tonnes by 3.7% from 1,215,000 tonnes a month earlier, and down 63,050 tonnes by 4.77% from 1,323,000 tonnes of the corresponding period last year. And the five-year average at the same period is 1,363,200 tonnes. 

The amount of soybean oil in outstanding contracts stays high at 2,603,700 tonnes this week, a decline of 10,100 tonnes or 0.39% from 2,613,800 tonnes last week.

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