Guoxin Futures: Exports boost US soybeans high, Dalian soybean meal follows the market with increasing open interest and rising.

Monday, Dalian soybean meal surged sharply higher. After the holiday, US soybeans jumped up in the early session, which drove domestic Dalian soybean meal buying to pour in, pushing futures prices higher along with increased positions. Internationally, CBOT’s soybean market electronic trading opened higher and continued rising. On July 2, the Ministry of Commerce confirmed that China and the US, in principle, have included soybeans and other agricultural products in a reciprocal tariff reduction framework. The market expects that subsequent import costs of US soybeans to China will decline, and China’s willingness and purchase volumes for US soybeans are expected to increase. Although this week’s weather in US production areas is favorable for soybean growth, an improving export outlook has started to provide phased support to US soybeans. If Chinese buying can be finalized in the near term, US soybeans may continue to rise; otherwise, the rally in US soybeans may weaken.

Domestically, information from Grain Business Network shows that Rizhao Bangji 43-protein soybean meal imported crushing spot traders quoted 2,850 yuan/ton, up 30 yuan/ton. The market has already digested expectations of ample supply, and poor crushing profits have not changed crushers’ price-support sentiment. In recent days, domestic hog and egg prices have both increased, which has given some support to the soybean meal market. The M2609 and M2701 contracts both broke through the nearby upper integer levels with strong volume, and bullish sentiment in the market has surged. Pay attention to positions; if positions do not decline, the market may continue to rise in the short term. (Guosen Futures)