China soymeal stock falls, swine flu impact ‘limited’: CNGOIC

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Soymeal demand in China remained strong last week, pushing stock levels lower to 1.22 million mt as market seasonality overshadows the impact of the swine flu outbreak, the China National Grain and Oil Information Centre (CNGOIC) said Thursday.

Soymeal stocks are down 40,000 mt over the week, with stock levels 30,000 mt lower than the same period last month, but 380,000 mt more than the same period last year.

“The recent pickup [in demand] from feedstock and swine companies has… [caused] soymeal stocks to decrease”, CNGOIC said in a report, with the improvement in demand largely driven by the seasonal uptrend in pork demand.

CNGOIC is optimistic that the swine flu outbreak will have only “limited impact” on soymeal demand, despite nine outbreaks confirmed and a number of pigs slaughtered as the authorities look to contain further infections.

“On the contrary, as pig farming recovers seasonally, soymeal demand picks up accordingly”, the CNGOIC said.

Meanwhile, the country’s soybean stocks moved higher to 9.61 million mt this week, up 310,000 mt from last week, as several large vessel arrivals coincided with lower crush rates.

Stocks are 500,000 mt higher than at the same time last month and 2.47 million mt higher than the same point of 2017.

The soybean crush slowed this week as several factories halted operations for maintenance, according to the CNGOIC, anticipating that the crush level should recover in the coming weeks.

Soyoil stock fell to 1.64 million mt this week, down from 1.66 million mt in the previous week, falling in line with the slower crush rate and weak demand for soyoil.


bloomberg