China triples soybean oil exports amid rising domestic inventories

China significantly increased its soybean oil exports in 2026 as production expanded while domestic demand remained insufficient. In January–September, shipments to international markets more than tripled compared with the same period last year, reaching nearly 800 thsd tons. The surge in exports comes amid high soybean crushing rates, which have led to the accumulation of substantial oil inventories in the domestic market.

As of October 30, 2026, commercial soybean oil inventories in China approached 1.5 mln tons, up 4.3% compared with the same period last year. According to consultancy Mysteel, this was the highest inventory level for the corresponding period since at least 2024. The main reason was production exceeding domestic sales, as edible oil consumption remained subdued amid slowing economic activity and reduced consumer spending on dining out.

Meanwhile, China continues to actively purchase soybeans on the global market to meet the needs of its processing and livestock industries. According to Datamar, Brazil exported more than 65 mln tons of soybeans to China in January–September 2026. At the same time, Beijing is increasing purchases of US soybeans under its trade agreements with Washington. Substantial volumes of imported raw materials are keeping Chinese crushing plants operating at high capacity, increasing supplies of soybean oil and meal.

Excess supply is also evident in the soybean meal market. In October, weekly soybean meal inventories in China reached their highest level in more than two years, although they subsequently declined slightly. Meanwhile, high soybean crushing rates continue to put pressure on the soybean oil market, as production exceeds sales. Against this backdrop, the most actively traded soybean oil futures on the Dalian Commodity Exchange fell by as much as 1%, responding to substantial domestic inventories and lower crude oil prices.

Rising Chinese soybean oil exports could intensify competition in the international edible oil market, where South American suppliers traditionally hold significant positions. Future developments will depend on the pace of imported soybean crushing, domestic consumption and accumulated inventory levels. If production continues to outpace demand, Chinese processors may maintain strong export activity, adding further downward pressure on global soybean oil prices.

Tags: China, soybean oil, oilseeds