-  Last week, Bloomberg reported that soybean shipments to China are increasing again amid demand for poultry and fish feed. Purchases slid earlier this year as bird flu affected demand for feed meal.

-  Industry experts said that seasonal restocking of inventories by fish farms and other aquaculture producers is the biggest driver of demand currently. Generally, poultry accounts for 40% of China’s consumption of animal feed. Hogs and fish account for another 30% each.

-  Another industry expert said that utilisation rate of soybean crushing plants in China has increased to 40% in April from 30% each in February and March.

-  Reuters reported that China sold 92% of soybeans offered at an auction last week.

-  The government sold 276,168 out of 300,000 tonnes of soybean at an average price of 4,233 yuan (US$680/tonne) in three north-eastern provinces. All of the soybean stocks were from the harvest in 2010.

-  The same article said that Beijing had stockpiled more than 3mil tonnes of domestic soybeans in the current crop year, which ended in April. It also holds 3mil tonnes from the stockpiling in 2011//2012 and 800,000 tonnes from 2012/13.

-  Soybean price was unchanged last week. US’ National Oilseed Processors Association said that domestic crushing rose from 120.1mil bushels in April 2013 to 132.7mil bushels in April 2014. Consensus was forecasting a figure of 130.2mil bushels.

-  Soybean oil inventories stood at 2.06bil pounds as at end-April 2014 versus consensus’ estimate of 1.99bil bushels and 2.64bil a year earlier.

-  Finally, palm oil inventory at the ports in China stood at 1.1mil tonnes in the week ending 12 May 2014, 30,000 tonnes fewer than the level as at end-April. A year ago, palm oil inventory at the ports amounted to 1.35mil tonnes.

-  So far this year, the highest level of palm oil inventory in China was 1.2mil tonnes, which was recorded in the week ended 21 Feb. The lowest was 0.95mil tonnes for the week ended 20 Jan. The highest level of palm oil inventory recorded last year was 1.5mil tonnes in the week ended 10 May.

Source: AmeSecurities