CICC Wealth Futures: Domestic soybean meal demand is underperforming, and the meal futures market still lacks upward momentum

On Monday, domestic soybean meal spot prices in China mostly declined, with local drops of 10-40 yuan/ton. Coastal soybean meal spot prices mostly ranged from 2,880 to 2,960 yuan/ton. Dongguan rapeseed meal prices fell by 20 yuan/ton to 2,220 yuan/ton. External supply pressure increased as imported soybeans arrived at ports, crushing volume at oil mills rebounded, and downstream buyers purchased on demand. The expectation of inventory buildup for soybean meal weakened the support for oil mills to hold prices, and the price recovery remained weak and still under pressure. On Monday, domestic soybean meal futures markets opened lower, then moved higher to test bottom and rebound, with the price center shifting downward. Overall, the market remained in a state of oscillation and correction. Brazil’s soybean harvest is nearing completion, and the record-high production pressure continues to be realized. Improved weather conditions in the U.S. benefits planting, and increased planting area boosts the outlook for production. Canadian rapeseed imports are arriving at ports gradually, and rapeseed meal supply is gradually recovering. External supply remains ample, but domestic soybean meal demand is weak, and soybean meal futures markets still lack upward momentum. (CICC Wealth Futures)