Report's Investment Rating for the Industry - No information regarding the industry investment rating is provided in the report. Core Views of the Report - In the soybean meal market, before the tightening of supply and demand is realized, the price faces upward pressure. The market shows a pattern of first tightening and then loosening, with near - term contracts showing relative strength and far - term contracts being relatively weak [7][77]. - In the oils and fats market, biodiesel and trade policies cause disruptions, leading to a differentiated trend. Short - term price fluctuations are significant, and the overall market is expected to open lower and then oscillate at a low level [78]. Summary According to the Table of Contents Soybean Meal Period and Spot Market - As of January 16, the spot price of soybean meal in East China decreased by 30 yuan/ton to 3070 yuan/ton, and the M2605 contract closed at 2727 yuan/ton, down 59 yuan/ton. The basis price increased by 30 yuan/ton. US soybeans showed a weak oscillation, and domestic soybean meal prices generally declined [7][9]. Supply Side - South American weather remains favorable, with a high soybean excellent rate and strong expectations of a bumper harvest. From January to March, domestic soybean arrivals will decrease, and the supply - demand situation will gradually tighten. From April to July, arrivals will remain high, with a large supply pressure [7]. Demand Side - Current soybean meal demand remains high, supported by high inventories of pigs and poultry and the good cost - effectiveness of soybean meal. In the second week of 2026, the national soybean inventory of oil mills was 713.12 million tons, slightly increasing by 2.87 million tons from the previous week, and the soybean meal inventory decreased significantly [7]. Cost Side - The cost of Brazilian soybeans in the 2025/26 season is 950 cents per bushel, and the cost of domestic soybean meal from May to August is estimated to be 2580 yuan/ton. The cost of US soybeans in the 2025/26 season is 1000 cents per bushel, and the import cost is estimated to be 3000 yuan/ton [7]. Market Outlook - Near - term contracts are supported by the expectation of inventory reduction and cost, with limited upward price space. Far - term contracts are weak due to the expectation of a South American bumper harvest. The pattern of strong near - term and weak far - term contracts will continue [7]. Oils and Fats Period and Spot Market - As of the week of January 16, the palm oil 05 contract decreased by 8 yuan/ton, the soybean oil 05 contract increased by 22 yuan/ton, and the rapeseed oil 05 contract increased by 21 yuan/ton. Palm oil was weak due to Indonesia's cancellation of B50, while soybean oil and rapeseed oil were relatively strong [78]. Palm Oil - From January 1 to 15, the production of Malaysian palm oil decreased, and exports increased, but the rate of decline and increase narrowed. Indonesia will not implement the B50 biodiesel plan in 2026. The domestic palm oil inventory slightly increased, and the 04 contract oscillated in the range of 3950 - 4200 [78]. Soybean Oil - USDA's January supply - demand report and December quarterly inventory report were bearish. Although China continues to purchase US soybeans, the market is worried about future purchases. The US biodiesel quota plan is expected to be positive for soybean oil demand. Domestic soybean and soybean oil inventories are high, but there are concerns about a decrease in arrivals from January to March, and the inventory decreased to 102.51 million tons [78]. Rapeseed Oil - China plans to reduce the import tariff of Canadian rapeseed to 15% before March, which is expected to lead to an increase in imports. Currently, the domestic rapeseed and rapeseed oil inventories are low, and the inventory decreased to 25 million tons. The short - term decline of near - term contracts is limited [78]. Market Outlook - In the short term, the oils and fats market is expected to open lower and then oscillate at a low level. Rapeseed oil is expected to be relatively weak, while soybean oil and palm oil are expected to be relatively strong. It is recommended to pay attention to the narrowing spread strategy between rapeseed and palm oil and rapeseed and soybean oil for the 05 contracts [78].

Group 1: Report Core Information - The report is about LPG and propylene futures on August 28, 2025, with the LPG cost rebounding and propylene supply - demand tightening and spot price rising [1] Group 2: Fundamental Tracking Futures Prices - PG2509 closed at 3,871 yesterday with a - 0.10% daily increase and 3,880 at night with a 0.23% night - session increase; PG2510 closed at 4,408 yesterday with a - 0.61% daily increase and 4,418 at night with a 0.23% night - session increase; PL2601 closed at 6,444 yesterday with a - 0.36% daily increase and 6,441 at night with a - 0.05% night - session increase; PL2602 closed at 6,478 yesterday with a - 0.57% daily increase and 6,449 at night with a - 0.45% night - session increase [1] Position and Trading Volume - PG2509 had 7,584 trades yesterday, a decrease of 258 from the previous day, and 15,526 positions, a decrease of 5000; PG2510 had 77,818 trades yesterday, an increase of 11179, and 88,792 positions, a decrease of 5275; PL2601 had 803 trades yesterday, a decrease of 314, and 4,820 positions, an increase of 76; PL2602 had 21 trades yesterday, an increase of 11, and 851 positions, a decrease of 1 [1] Spreads - The spread of Guangzhou domestic gas to PG10 contract was 192 yesterday, compared with 135 the previous day; the spread of Guangzhou imported gas to PG10 contract was 232 yesterday, compared with 185 the previous day; the spread of Shandong propylene to PL01 contract was 116 yesterday, compared with 3 the previous day; the spread of East China propylene to PL01 contract was 56 yesterday, compared with 8 the previous day; the spread of South China propylene to PL01 contract was - 19 yesterday, compared with - 42 the previous day [1] Key Industrial Chain Data - The PDH operating rate this week was 75.7%, compared with 76.3% last week; the MTBE operating rate was 63.5%, compared with 63.4%; the alkylation operating rate was 49.0%, the same as before [1] Group 3: Trend Intensity - The trend intensity of LPG is 0, and that of propylene is 0. The trend intensity ranges from - 2 to 2, with - 2 being the most bearish and 2 being the most bullish [7] Group 4: Market Information CP Paper Cargo Prices - On August 26, 2025, the September CP paper cargo price of propane was 516 dollars/ton, down 4 dollars/ton from the previous trading day; the price of butane was 492 dollars/ton, down 3 dollars/ton. The October CP paper cargo price of propane was 530 dollars/ton, down 5 dollars/ton from the previous trading day [8] Domestic PDH Device Maintenance Plans - Multiple companies have PDH device maintenance plans, such as Henan Huasong New Material Technology Co., Ltd. starting maintenance on May 12, 2023, with the end time to be determined; Jineng Chemical (Qingdao) Co., Ltd. starting maintenance on August 19, 2025, and ending in October 2025 [10] Domestic Liquefied Gas Factory Device Maintenance Plans - Many factories have maintenance plans, like Shengli Oilfield in Shandong starting a full - plant maintenance on June 16, 2025, and ending in late August 2025, with a normal output of 400 and a loss of 400 [10]