According to Cofeed, in the week as of Apr 2, details of soybean oil inventories and outstanding contracts in main domestic regions are as follows:

Operation rates fractionally decline in China this week (Mar 27-Apr 2) as some mills suspend production due to soybean shortages or swelling meal inventory. Soybean crush at domestic mills totals 1,545,600 tonnes (meal 1,221,024 tonnes and oil 293,664 tonnes), down 18,380 tonnes or 1.17% from 1,563,980 tonnes last week. Meanwhile, operation rates (capacity utilization) are 43.58%, down0.52% from 44.10% in the previous week. Soybean crush is expected to be 1.52 mln tonnes next week and 1.75 mln tonnes in week 15.

Soybean oil stocks continue falling this week as the output reduces following a decline in soybean crush. In the week ending Apr 2, China’s soybean oil commercial inventories total 622,600 tonnes, down 50,500 tonnes by 7.5% from 673,100 tonnes last week, down 208,100 tonnes by 25.05% from 830,700 tonnes month on month, and down 528,700 tonnes by 45.92% from 1,151,300 tonnes year on year. And the five-year (2016-2020) average at the same period is 1,132,100 tonnes.

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