National Grain and Oil Information Center: Since June, domestic soybean meal prices have dropped significantly, with futures contracts totaling nearly 500 RMB/ton and spot prices dropping by 350-400 RMB/ton. It is understood that the bearish sentiment in the market has loosened recently, and some companies are considering gradually increasing their inventory in August.

One reason is that South American soybean imports will decrease in September, and new soybeans from the United States will be concentrated in ports after October. At that time, domestic oil mills' soybean crushing and soybean meal output will decrease.

Secondly, although there has been abundant rainfall in the United States since planting, soybean growth has been good, and US soybean prices have fallen to a nearly four-year low, we have not yet entered the critical period of soybean growth in August. If adverse weather conditions occur in the United States in the future, US soybean prices are likely to rebound, which will drive up domestic soybean meal prices.

Thirdly, although the current soybean meal inventory is nearly 1.3 million tons, it is still relatively limited compared to the domestic demand of nearly 6 million tons per month. Once the import of soybeans to ports decreases and the operating rate of oil plants decreases, the soybean meal inventory will rapidly decline.

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