Inventories of soybean Oil in China have surged to record highs, driven by elevated crushing rates that have significantly boosted supply while demand for the edible oil remains weak. As the world's largest importer of soybeans, the nation continues to purchase the oilseed from both Brazil and the United States. These acquisitions are intended to support its massive livestock herd and fulfill Beijing's commitment under a trade truce to buy American shipments.
However, the high volume of crushing has led to an oversupply of soybean oil. This accumulation coincides with a slowdown in consumption, as consumers have reduced their spending on dining out due to broader economic deceleration.
Sources: Bloomberg Markets.