China Faces Soybean Oil Glut as It Buys Soybeans from Brazil and U.S.

China’s soybean oil inventories have reached record levels as high soybean crushing rates boosted supplies while consumption of the edible oil remained weak.

The world’s largest soybean importer has been purchasing soybeans from both Brazil and the United States to feed its vast livestock herd, while also fulfilling Beijing’s pledge to buy U.S. shipments under a trade truce.

According to analyses conducted by Datamar, Brazil shipped more than 65 million metric tons of soybeans to China between January and September 2026. The chart below provides a month-by-month breakdown of export volumes:

Soybean Exports to China | Jan 2024 – Sep 2026 | WTMT

 Fonte: DataLiner – consulte nossos dados de comex

However, elevated crushing rates have increased soybean oil supplies, while consumers have cut back on dining out amid an economic slowdown.

Commercial soybean oil stocks in China climbed to nearly 1.5 million metric tons on Friday (Oct. 30), up 4.3% from a year earlier and reaching their highest level for that time of year since at least 2024, Chinese consultancy Mysteel said in a report released late Monday (Nov. 2).

The country’s weekly soybean meal inventories also reached their highest level in more than two years in October before declining slightly.

Soybean Oil Inventories Remain Under Pressure

Pressure on soybean oil inventories has yet to ease significantly, as high operating rates at crushing plants have resulted in production outpacing sales and deliveries, COFCO Futures’ Wuhan branch said in a note on Tuesday (Nov. 3).

The oversupply has prompted Chinese producers to increase overseas sales. Soybean oil exports more than tripled year over year in the first nine months of 2026, reaching nearly 800,000 metric tons.

The most actively traded soybean oil futures on the Dalian Commodity Exchange fell as much as 1%, weighed down by abundant domestic supplies. Prices also came under pressure from crude oil, which had plunged amid optimism over peace negotiations between the United States and Iran.

Source attribution: Bloomberg / Bloomberg Línea

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