According to Cofeed, on the week as of August 28, details of soybean stocks and soybean meal stocks and outstanding contracts in coastal regions are as follows:

Soybean: Imported soybean inventories have reduced this week, as soybean crush increases to 2.03 mln tonnes and soybean vessels are in slow unloading pace at some ports. In the week as of Aug 28, China’s imported soybean stocks in coastal regions total 6,039,700 tonnes, down 320,300 tonnes by 5.04% from 6,360,000 tonnes last week yet up by 15.41% from 5,233,200 tonnes of the same period last year. Domestic soybean stocks usually decreased gradually from September in previous years, but China has purchased much more U.S. soybeans this year as a part of the trade deal, so it is necessary to focus on soybean crush.

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

Soybean meal: Soybean meal stocks continue the uptrend under high soybean crush and a slower pace in soybean meal trade and delivery. In the week as of Aug 28, China’s soybean meal stocks in coastal regions are 1,202,600 tonnes, up 61,300 tonnes by 5.37% from 1,141,300 tonnes last week and up by 54.85% from 776,600 tonnes of the corresponding period last year. Soybean crush is predicted to stay high at 2.04 mln tonnes next week, so soybean meal stocks may continue to increase.

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

Outstanding contracts: The amount of soybean meal in outstanding contracts continues to decrease this week due to fewer new contracts signed. In the week as of Aug 28, outstanding contracts in mills in domestic coastal regions hold 3,936,800 tonnes not delivered, down 813,600 tonnes by 17.13% from 4,750,400 tonnes last week yet up by 13.09% from 3,480,900 tonnes of the same period last year.

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