On July 16th, the National Grain and Oil Information Center reported that in previous years, when domestic soybean meal inventories increased to over 1 million tons, oil factories were likely to experience soybean meal inventory expansion and price decline. After the soybean meal inventory of domestic oil plants exceeded 1 million tons in mid June this year, it has continued to rise and reached a high of 1.24 million tons, highlighting the pressure on soybean meal supply and causing prices to continue to decline.

On July 15th, the closing price of the Dalian Commodity Exchange soybean meal 2409 contract was 3,111 RMB/ton, down 6.1% on a week on week basis and 10.0% on a month on month basis. In order to maintain squeezing profits, oil factories have strengthened their willingness to support soybean meal basis. On the same day, the basis quotation of ordinary soybean meal M2409 in coastal areas was -120 to -25 RMB/ton, with a weekly increase of 30-50 RMB/ton and a monthly increase of 20-40 RMB/ton.

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