China soyoil stocks shrink further on lower soybean crush

Soyoil stocks in China fell below 800,000 mt for the first time in at least three years as soybean crush volumes continued to fall due to weak soymeal demand.

Total soyoil stocks slumped to 760,000 mt last week, down 80,000 mt on the week, according to data from China’s National Grain and Oil Information Centre (CNGOIC) on Thursday.

The stock level was down 60,000 mt month-on-month and was 650,000 mt lower compared with the same point last year.

“Soybean crush volume has been maintained at a low level in the past two months. Domestic rapeseed oil and palm oil supply is limited, and soyoil demand has been healthy,” said CNGOIC.

Soybean crush volume fell 230,000 mt on the week to 1.45 million mt, down 20,000 mt year-on-year.

The stock level for soybeans continued to fall due to the slow pace of vessel landings, down 450,000 mt to 5.19 million mt last week – the lowest level in a month.

Meanwhile, soymeal stocks fell 110,000 mt on the week to 760,000 mt due to slower crush.