Report Industry Investment Ratings No relevant information provided. Core Views Fats and Oils - Palm oil: After the release of the MPOB supply - demand report's inventory growth risk, the futures price is in a volatile rebound and is expected to strengthen to the 4200 - 4250 ringgit range in Malaysia and 8900 yuan in the domestic Dalian market [1]. - Soybean oil: The EPA's approval of small refinery exemptions increases the uncertainty of renewable fuels, pressuring CBOT soybean oil. Domestic spot basis quotes are expected to fluctuate narrowly [1]. Sugar - International: The end of the US government shutdown warms the macro - market, but the supply is expected to be loose, and the raw sugar price is in a weak and volatile trend. - Domestic: Constrained by import quotas, the price follows the decline less significantly. The new sugar season in Guangxi is expected to start late, and the price is expected to fluctuate [3][4]. Corn - The corn price is stable with a slight upward trend. The supply pressure still exists in November, but there is cost and storage policy support. The short - term price is affected by demand from different industries [5]. Cotton - US cotton: The listing inspection is progressing steadily, but due to global high yields, it maintains a low - level volatile trend. - Domestic cotton: There is hedging pressure, but also cost support. The downstream demand is weak, and the short - term price is expected to fluctuate within a range [8]. Meal - The market is waiting for the USDA report. The US soybean support is strengthening, but the 13% tariff on US soybeans in China affects exports. Domestic soybean inventory is high, and soybean meal is expected to be in a wide - range shock [11]. Pork - The spot price is weak, and the overall supply is normal. The slowdown of the November planned slaughter may boost the price. The price is in a range - bound pattern, and the 3 - 7 reverse spread can be held, with a cautiously bullish view on the single - side [14]. Eggs - The supply of eggs is under pressure, and the demand is stable. The egg price is expected to fluctuate widely at the bottom. Short - sell the December contract and pay attention to the 3400 resistance of the January contract [18]. Summary by Relevant Catalogs Fats and Oils - **Price Changes**: - Soybean oil: The spot price in Jiangsu increased by 1.18% to 8550 yuan/ton, and the futures price Y2601 increased by 0.12% to 8238 yuan/ton. - Palm oil: The spot price in Guangdong increased by 0.58% to 8610 yuan/ton, and the futures price P2601 increased by 0.92% to 8770 yuan/ton. - Rapeseed oil: The spot price in Jiangsu increased by 2.03% to 10030 yuan/ton, and the futures price OI601 increased by 1.96% to 9775 yuan/ton [1]. - **Spread Changes**: - Soybean oil inter - period spread 01 - 05 decreased by 7.83% to 212. - Palm oil inter - period spread 01 - 05 increased by 17.65% to - 84. - Rapeseed oil inter - period spread 01 - 05 increased by 3.15% to 426 [1]. Sugar - **Futures Market**: - The price of SR2601 increased by 0.09% to 5480 yuan/ton, and SR2605 increased by 0.11% to 5411 yuan/ton. - The ICE raw sugar main contract increased by 0.14% to 14.28 cents/lb [3]. - **Spot Market**: - The price in Nanning remained unchanged at 5780 yuan/ton, and in Kunming at 5650 yuan/ton. - The Nanning basis decreased by 1.60% to 369 yuan/ton, and the Kunming basis decreased by 2.45% to 239 yuan/ton [3]. - **Industry Situation**: - National sugar production increased by 12.03% to 1116.21 million tons, and sales increased by 9.17% to 1048 million tons. - Guangxi's sugar production increased by 4.59% to 646.50 million tons, and monthly sales decreased by 41.20% to 26.66 million tons [3]. Corn - **Price Changes**: - The price of C2601 increased by 0.60% to 2177 yuan/ton, and the Jinzhou Port FAS price increased by 0.46% to 2180 yuan/ton. - The Shekou bulk grain price increased by 1.32% to 2300 yuan/ton [5]. - **Profit and Spread**: - The north - south trade profit increased by 222.22% to 29 yuan/ton, and the import profit increased by 13.30% to 264 yuan/ton. - The corn 1 - 5 spread increased by 10.47% to - 77 [5]. Cotton - **Futures Market**: - The price of CF2605 decreased by 0.15% to 13560 yuan/ton, and CF2601 decreased by 0.15% to 13560 yuan/ton. - The ICE US cotton main contract decreased by 0.64% to 63.93 cents/lb [8]. - **Spot Market**: - The Xinjiang arrival price of 3128B decreased by 0.02% to 14668 yuan/ton, and the CC Index 3128B decreased by 0.01% to 14842 yuan/ton [8]. - **Industry Situation**: - Commercial inventory increased by 70.4% to 293.06 million tons, and industrial inventory increased by 9.7% to 88.82 million tons. - The import volume increased by 42.9% to 10 million tons [8]. Meal - **Price Changes**: - The price of soybean meal in Jiangsu remained unchanged at 3060 yuan/ton, and the futures price M2601 decreased by 0.29% to 3054 yuan/ton. - The price of rapeseed meal in Jiangsu remained unchanged at 2530 yuan/ton, and the futures price RM2601 decreased by 1.07% to 2500 yuan/ton [11]. - **Spread Changes**: - The soybean meal inter - period spread 01 - 05 decreased by 6.84% to 218, and the rapeseed meal inter - period spread 01 - 05 decreased by 20.20% to 79 [11]. Pork - **Futures Market**: - The price of LH2605 decreased by 0.04% to 12065 yuan/ton, and LH2601 decreased by 1.67% to 11755 yuan/ton. - The 1 - 5 spread decreased by 169.57% to - 310 [14]. - **Spot Market**: - The spot price in Henan decreased by 200 yuan/ton to 11850 yuan/ton, and in Shandong decreased by 120 yuan/ton to 12080 yuan/ton [14]. - **Industry Indicators**: - The daily slaughter volume decreased by 0.45% to 162448, and the weekly white - strip price remained unchanged at 18.70 yuan/kg [14]. Eggs - **Futures Market**: - The price of the December egg contract decreased by 0.76% to 3152 yuan/500KG, and the January contract decreased by 0.30% to 3373 yuan/500KG [18]. - **Spot Market**: - The egg - producing area price decreased by 1.32% to 3.01 yuan/jin, and the egg - to - feed ratio decreased by 1.68% to 2.34 [18]. - **Industry Situation**: - The egg - laying hen inventory is expected to be stable in November, and the supply pressure remains [18].

Investment Rating - The report maintains an "Outperform" rating for the sustainable aviation fuel (SAF) industry, indicating expected performance above the market average [2][29]. Core Insights - The European Union (EU) has launched a €3.3 billion investment plan to support the decarbonization of the aviation and shipping sectors, focusing on the development of renewable and low-carbon fuel production systems [3][10]. - The demand for SAF is primarily driven by policy initiatives, with the EU aiming for a 2% blending target by 2025 and a long-term goal of 70% by 2050. The International Air Transport Association (IATA) projects SAF demand to reach 358 million tons by 2050, indicating significant growth potential [4][6]. - The EU's ambitious decarbonization goals necessitate an estimated €100 billion investment by 2035 to meet future SAF demand, with the recent investment plan signaling a commitment to stabilize investor confidence [4][10]. Summary by Sections Investment Plan and Policy Framework - The EU's Sustainable Transport Investment Plan (STIP) outlines a roadmap for promoting the use of renewable and low-carbon fuels, aiming for a 90% reduction in transport-related carbon emissions by 2050 [10][14]. - The plan includes specific investment allocations, such as €2 billion for developing sustainable alternative fuels and €1.53 billion for synthetic aviation fuels [14][16]. Market Dynamics and Pricing - SAF prices have surged due to high production costs compared to traditional jet fuel, with the price of high-end SAF in China reaching $2,650 per ton as of November 10, 2023, a 47.22% increase from the beginning of the year [4][18]. - The scarcity of SAF raw materials, such as used cooking oil (UCO), is expected to sustain high market demand and pricing [4][18]. Company Recommendations - The report recommends investing in companies like Jiaao Environmental and Excellent New Energy, which are positioned as leaders in the SAF market with significant production capacities [5][23]. - Jiaao Environmental has a SAF production capacity of 500,000 tons and has received export licenses, while Excellent New Energy is expanding its biodiesel and SAF production capabilities [5][23].

Core Viewpoint - Honeywell has developed a new system that converts biomass into ready-to-use renewable fuels, offering a more environmentally friendly alternative to traditional marine fuels, sustainable aviation fuel (SAF), and gasoline [1] Group 1: Technology and Innovation - The innovative bio-crude upgrading technology utilizes agricultural and forestry by-products to transform waste into a cheap and abundant biomass source [1] - The renewable marine fuel produced has a higher energy density compared to existing biofuels, allowing for extended vessel range without the need for expensive engine modifications [1] - Honeywell's modular factory approach reduces risks and simplifies deployment of the technology [1] Group 2: Market Demand and Strategy - The maritime industry urgently requires immediately available and cost-effective renewable fuels, which Honeywell aims to address with its modular bio-crude upgrading technology [1] - The technology is designed to save costs across all stages from installation to refining [1]

Core Viewpoint - Honeywell has developed a new system that converts biomass into ready-to-use renewable fuels, offering a more environmentally friendly alternative to traditional marine fuels, sustainable aviation fuel (SAF), and gasoline [1] Group 1: Technology and Innovation - The innovative bio-crude upgrading technology utilizes agricultural and forestry by-products to transform waste into a cheap and abundant biomass source [1] - The renewable marine fuel produced has a higher energy density compared to existing biofuels, allowing for extended vessel range without the need for expensive engine modifications [1] - The key selling point of this product is its compatibility with existing engine infrastructure, enabling the use of biofuels without requiring changes [1] Group 2: Market Demand and Cost Efficiency - Honeywell's modular bio-crude upgrading technology is designed to save costs across all stages from installation to refining [1] - The maritime industry urgently needs immediately available and cost-effective renewable fuels, which Honeywell aims to address through its innovative solutions [1]

Report Summary 1. Report Industry Investment Rating No information provided in the given content. 2. Core Viewpoints The report comprehensively presents the latest trends in the global agricultural and energy markets, including price fluctuations, supply - demand dynamics, and weather impacts. It also covers macro - economic news and capital flows in the futures market, which can help investors understand the overall market situation and make investment decisions [1][2][3][9][10][11][15][22][24][27]. 3. Summary by Directory 3.1 Overnight Market - Brent 12 (ICE) closed at $60.94, down 0.65% from the previous day and up 0.48% overnight. WTI 12 (NYMEX) closed at $56.93, down 0.56% from the previous day and up 0.64% overnight. CBOT Soybean 11 closed at 1032.75, up 1.15% from the previous day and up 0.46% overnight [1]. - The US Dollar Index was at 98.61, up 0.08%. The CNY/USD exchange rate was 7.0973, up 0.03% [2]. 3.2 Spot Market - For DCE Palm Oil 2601, spot prices in North China, East China, and South China were 9480, 9320, and 9310 respectively, with basis values of 90, - 70, and - 80, and no change in basis compared to the previous day [3]. - For DCE Soybean Oil 2601, spot prices in Shandong, Jiangsu, Guangdong, and Tianjin were 8500, 8540, 8620, and 8480 respectively, with basis values of 166, 206, 286, and 146, and basis changes of - 48, 2, - 8, and - 8 respectively [3]. - For DCE Soybean Meal 2601, spot prices in Shandong, Jiangsu, Guangdong, and Tianjin were 2920, 2870, 2890, and 2960 respectively, with basis values of 14, - 36, - 16, and 54, and basis changes of - 6, - 36, - 16, and - 36 respectively [3]. 3.3 Production Area Weather - In the US soybean - producing states from October 25 - 29, temperatures and precipitation are generally above normal levels. The Midwest will see a front in the early part of the week, but precipitation will be limited [6][8]. - In Brazil, central areas have continuous showers, which is beneficial for soybean planting. Southern states will be mostly dry before Friday [8]. 3.4 Industry News - ITS data shows that Malaysia's palm oil exports from October 1 - 20 increased 3.4% compared to the same period last month [9]. - Indonesia may regulate palm oil exports to ensure domestic biodiesel supply, planning to increase to B50 in the second half of 2026 [9]. - Analysts expect the US soybean harvest rate to be 73% and the corn harvest rate to be 59% as of last Sunday [9]. - As of the week ending October 16, 2025, US soybean export inspections were 1,474,354 tons, higher than expected [10]. - As of the week ending October 18, 2025, Brazil's 2025/26 soybean planting rate was 21.7% [10]. - As of last Thursday, Brazil's 2025/26 soybean sowing rate reached 24%, and the sowing area of the first - season corn in the central - southern region reached 51% of the planned area [11]. - Brazil exported 3,647,485.15 tons of soybeans in the first three weeks of October, with a daily average export volume 31% higher than the same period last year [11]. - In September 2025, the EU 27 + UK's rapeseed and soybean crushing volumes decreased compared to August [11]. - Canada's estimated ending inventory of rapeseed for the 2025/26 season remains at 2.5 million tons [12]. 3.5 Domestic Supply and Demand - On October 20, the total trading volume of soybean oil and palm oil was 12,200 tons, up 1% from the previous day [15]. - On October 20, the trading volume of soybean meal in major domestic oil mills was 101,100 tons, with the oil mill operating rate at 66.59%, up 4.06% from the previous day [15]. - As of October 17, 2025, the commercial inventory of palm oil in key domestic regions was 575,700 tons, up 5.13% from the previous week; the commercial inventory of soybean oil was 1.224 million tons, down 3.25% from the previous week [15]. - China's September imports of palm oil decreased year - on - year, while soybean, soybean oil, and rapeseed oil imports showed different trends [16][17][18]. - The national pig - to - grain ratio was 5.22 as of October 15, down 4.40% from October 8 [19]. - The "Agricultural Product Wholesale Price 200 Index" and the "Vegetable Basket Product Wholesale Price Index" increased on October 20 compared to last Friday [20]. 3.6 Macro News - **International News** - The probability of the Fed cutting interest rates by 25 basis points in October is 99.4%, and the probability of a cumulative 50 - basis - point cut in December is 98.6% [22]. - Argentina signed a $20 billion currency swap agreement with the US Treasury [22]. - The eurozone's seasonally - adjusted current account in August was 11.903 billion euros, down from the previous value [22]. - **Domestic News** - On October 20, the USD/CNY exchange rate was 7.0973, up 24 points (CNY depreciation) [24]. - On October 20, the central bank conducted 189 billion yuan of 7 - day reverse repurchase operations, resulting in a net withdrawal of 64.8 billion yuan [24]. - China's GDP grew 5.2% year - on - year in the first three quarters, and the GDP growth rate in the third quarter was 4.8% [24]. - The central bank kept the one - year and five - year LPR unchanged at 3% and 3.5% respectively [24]. - As of October 9, 2025, the total capital in China's futures market exceeded 2 trillion yuan, up 24% from the end of 2024 [24]. 3.7 Capital Flows On October 20, 2025, the futures market saw a net capital outflow of 16.146 billion yuan, including a net outflow of 7.775 billion yuan from the commodity futures market, 7.754 billion yuan from the stock index futures market, and 668 million yuan from the bond futures market [27].

Group 1: Report Industry Investment Ratings - Not provided in the given content Group 2: Core Views of the Report Palm Oil - In Malaysia, with export growth and production increase lower than market expectations, there is a chance for the price to rise to 4,650 ringgit. Pay close attention to export data and MPOA production data, and focus on whether the price can effectively stand above 4,500 ringgit. In China, the Dalian palm oil futures market maintains a narrow - range consolidation trend. After repeated consolidation, watch if it can break through and stand above 9,500 yuan driven by the rise of Malaysian palm oil [1]. Soybean Oil - Sino - US trade negotiations seem to be back on track after weeks of new tariff threats and export restrictions. The data from the US EPA shows that the renewable fuel blending volume in September exceeded that in August, which is positive for Chicago soybean oil futures. In China, the Dalian soybean oil futures rose following the strength of CBOT soybeans and soybean oil, but the increase was limited due to the drag of Sino - Canadian negotiations and limited downstream demand before the Spring Festival stocking. The possibility of a short - term continued rise is low [1]. Sugar - From the second half of September, the sugarcane crushing volume in the central - southern region of Brazil increased year - on - year, and the cumulative sugar production also increased. Affected by supply expectations, the upward momentum of raw sugar prices is limited. As of October, the market focuses on the production prospects of India and Thailand. The overall production is currently optimistically estimated, and the raw sugar price is expected to fluctuate between 15 - 16 cents per pound. The September sales data is neutral to weak, and the inventory has increased year - on - year. The new sugar pre - sale price is much lower than the current market price, and the spot market is expected to maintain a weak and volatile pattern [3][4]. Cotton - The purchase price of machine - picked cottonseed in Xinjiang is firm. The Zhengzhou cotton futures main contract has cost support at low levels, but there is also increasing hedging pressure above 13,500 - 13,600 yuan. The downstream terminal demand is weak, but textile enterprises' cotton inventory is not high, and they have demand for cotton at current prices. In the short term, the cotton price is expected to fluctuate within a range [5]. Eggs - The存栏量 of laying hens remains high, and the egg supply is sufficient. The downstream demand has improved, which will drive up the egg price. However, the sufficient supply at the origin may suppress the increase in egg prices. It is expected that the egg price will rise slightly this week and then stabilize, but there is still overall pressure [8][10]. Corn - In the short term, the corn price has stabilized and rebounded slightly due to the decrease in supply. However, the pattern of strong supply and weak demand remains unchanged, and the upward space of the price is limited. The demand from deep - processing and feed enterprises is cautious, but their inventory is relatively low, and the subsequent purchase intention will increase. Some regions have started purchasing and storage, but the scale is small [13]. Meal - related Products - The US soybean has improved slightly, but lacks substantial positive factors. Brazil's new - crop soybean sowing is progressing smoothly, and the domestic soybean supply in the fourth quarter is sufficient. The domestic soybean and soybean meal inventory is still at a high level, and the spot price is expected to be weak this year. However, the downward space is limited. If China continues not to purchase US soybeans, the M2601 contract has support around 2,900 yuan, and there may be opportunities for 1 - 5 positive spreads [18]. Pigs - In the short term, the supply and demand are basically balanced, and the pig price has stabilized and rebounded due to the entry of second - fattening in North and Northeast China. In the long term, the supply pressure in the fourth quarter will continue to be released, and the pig price is not optimistic. Policy - driven capacity reduction needs time to take effect, and it is expected that the spot price will still face pressure until the first half of next year. The disk operation should focus on short - selling on rallies, and hold the LH3 - 7 reverse spread [21]. Group 3: Summaries According to Relevant Catalogs Futures Market Data Oils and Fats - **Soybean Oil**: On October 20, the spot price in Jiangsu was 8,610 yuan, up 0.23% from October 17; the futures price of Y2601 was 8,298 yuan, up 0.51%; the basis of Y2601 was 312 yuan, down 6.59% [1]. - **Palm Oil**: The spot price in Guangdong was 9,300 yuan, up 0.54%; the futures price of P2601 was 9,318 yuan, up 0.11%; the basis of P2601 was - 18 yuan, up 68.97%. The import cost in Guangzhou Port in January was 9,708.1 yuan, up 0.18%, and the import profit was - 390 yuan, down 2.06%. The number of warehouse receipts was 600, up 20% [1]. - **Rapeseed Oil**: The spot price in Jiangsu was 10,120 yuan, unchanged; the futures price of OI601 was 9,918 yuan, up 0.58%; the basis of OI601 was 202 yuan, down 22.01% [1]. Sugar - On October 20, the futures price of sugar 2601 was 5,428 yuan/ton, up 0.30%; the futures price of sugar 2605 was 5,386 yuan/ton, up 0.22%; the 1 - 5 spread was 42 yuan/ton, up 11.43%. The main contract's open interest was 426,415, down 3.41% [3]. Cotton - The futures price of cotton 2605 was 13,390 yuan/ton, up 1.05%; the futures price of cotton 2601 was 13,335 yuan/ton, up 0.97%; the 5 - 1 spread was 55 yuan/ton, up 18.18%. The main contract's open interest was 586,467, up 1.11% [5]. Eggs - The price of the egg 11 - contract was 2,770 yuan/500KG, down 1.25%; the price of the egg 01 - contract was 3,166 yuan/500KG, down 0.41%. The basis was 174 yuan/500KG, down 24.47% [8]. Corn - The futures price of corn 2601 was 2,138 yuan/ton, up 0.99%; the basis was 12 yuan/ton, down 7.69%; the 1 - 3 spread was - 30 yuan/ton, down 7.14%. The open interest was 1,701,632, up 1.43%, and the number of warehouse receipts was 49,324, up 34.36% [13]. Meal - related Products - **Soybean Meal**: The spot price in Jiangsu was 2,900 yuan, down 0.68%; the futures price of M2601 was 2,895 yuan, up 0.94%; the basis of M2601 was 5 yuan, down 90.38%. The number of warehouse receipts was 42,761, down 0.3% [18]. - **Rapeseed Meal**: The spot price in Jiangsu was 2,430 yuan, up 0.83%; the futures price of RM2601 was 2,350 yuan, up 1.91%; the basis of RM2601 was 80 yuan, down 23.08%. The number of warehouse receipts was 7,702, unchanged [18]. Pigs - The futures price of the live hog 2511 contract was 11,410 yuan/ton, up 3.26%; the futures price of the live hog 2601 contract was 12,155 yuan/ton, up 4.16%. The 11 - 1 spread was - 745 yuan/ton, down 20.16%. The main contract's open interest was 102,555, down 4.13% [21]. Spot Market Data Sugar - The spot price in Nanning was 5,770 yuan, down 0.35%; in Kunming, it was 5,740 yuan, down 0.35%. The basis in Nanning was 381 yuan, down 7.75%; in Kunming, it was 351 yuan, down 8.36%. The import price of Brazilian sugar (within quota) was 4,254 yuan/ton, down 1.53%; (out - of - quota) was 5,396 yuan/ton, down 1.59% [3]. Cotton - The Xinjiang arrival price of 3128B cotton was 14,517 yuan, up 0.05%; the CC Index of 3128B was 14,679 yuan, unchanged; the FC Index of M: 1% was 12,851 yuan, unchanged. The basis of 3128B - 01 contract was 987 yuan/ton, down 11.88%; the basis of 3128B - 05 contract was 1,052 yuan/ton, down 10.47% [5]. Eggs - The egg - producing area price was 2.94 yuan/500KG, down 3.01%; the price of laying hens was 2.60 yuan/feather, unchanged; the price of culled hens was 4.32 yuan/jin, down 3.14% [8]. Corn - The FOB price in Jinzhou Port was 2,150 yuan/ton, up 0.94%; the bulk grain price in Shekou was 2,310 yuan/ton, unchanged. The north - south trade profit was 79 yuan/ton, down 20.20%; the CIF price was 1,982 yuan/ton, up 0.04%; the import profit was 328 yuan/ton, down 0.21% [13]. Meal - related Products - **Soybean Meal**: The spot price in Jiangsu was 2,900 yuan, down 0.68%. - **Rapeseed Meal**: The spot price in Jiangsu was 2,430 yuan, up 0.83% [18]. Pigs - The spot price in Henan was 11,530 yuan/ton, up 180 yuan; in Shandong, it was 11,550 yuan/ton, up 150 yuan; in Sichuan, it was 11,010 yuan/ton, up 160 yuan; in Liaoning, it was 11,590 yuan/ton, up 140 yuan; in Guangdong, it was 11,530 yuan/ton, up 20 yuan; in Hunan, it was 10,810 yuan/ton, unchanged; in Hebei, it was 11,570 yuan/ton, up 170 yuan [21]. Industry Situation Data Sugar - The cumulative national sugar production was 1,116.21 million tons, up 12.03% year - on - year; the cumulative national sugar sales were 1,048 million tons, up 9.17% year - on - year. The cumulative sugar production in Guangxi was 646.50 million tons, up 4.59% year - on - year; the monthly sugar sales in Guangxi were 26.66 million tons, down 41.20% year - on - year [3]. Cotton - The inventory decreased by 13.1% month - on - month; the industrial inventory decreased by 1.9% month - on - month; the import volume increased by 42.9% month - on - month; the bonded area inventory increased by 1.4% month - on - month [5]. Eggs - The egg - to - feed ratio was 2.31, down 7.97%; the breeding profit was - 28.71 yuan/feather, down 69.88% [8]. Corn - The number of remaining vehicles at Shandong deep - processing enterprises in the morning was 446, down 1.11% [13]. Meal - related Products - The盘面 import profit of Canadian rapeseed meal for January shipment was 792 yuan, up 5.74% [18]. Pigs - The daily slaughter volume of sample points was 164,642, down 1.13%; the weekly white - strip price was 19.01 yuan, unchanged; the weekly piglet price was 26.00 yuan/kg, unchanged; the weekly sow price was 32.47 yuan, down 0.09%; the weekly slaughter weight was 128.25 kg, down 0.18%; the weekly self - breeding profit was - 245 yuan/head, down 60.83%; the weekly purchased - pig breeding profit was - 375 yuan/head, down 24.66%; the monthly fertile sow inventory was 4,038 million heads, down 0.10% [21].

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Views - **Palm Oil**: Slow destocking in the origin areas, focus on the support level below [2][4]. - **Soybean Oil**: Favorable production situation in South America, pay attention to China - US economic and trade relations [2][4]. - **Soybean Meal**: Strong US soybeans, may follow the rebound and fluctuate [2][11]. - **Soybean**: Bullish and fluctuating [2][11]. - **Corn**: Fluctuating [2][14]. - **Sugar**: Narrow - range consolidation [2][18]. - **Cotton**: Continuing the rebound momentum [2][23]. - **Eggs**: Weak and fluctuating [2][27]. - **Pigs**: Active entry of second - fattening farmers [2][29]. - **Peanuts**: Focus on the spot market [2][35]. 3. Summary by Related Catalogs **3.1 Palm Oil and Soybean Oil** - **Fundamentals**: Palm oil's daily - session closing price was 9,318 yuan/ton with a 0.11% increase, and night - session closing price was 9,294 yuan/ton with a - 0.26% decrease; soybean oil's daily - session closing price was 8,298 yuan/ton with a 0.51% increase, and night - session closing price was 8,324 yuan/ton with a 0.31% increase. There were also details about trading volume, open interest, spot prices, basis, and price spreads [5]. - **Macro and Industry News**: Malaysia's palm oil exports from October 1 - 20 increased by 3.4% compared to the same period last month; Indonesia may regulate palm oil exports to ensure domestic biodiesel supply; analysts' forecasts for US soybean and corn harvest rates; US soybean export inspection data; renewable fuel blending data in the US; Brazil's soybean planting progress and export data; EU and UK oilseed crushing data; Canada's rapeseed supply and demand data [6][7][8][9]. - **Trend Intensity**: Both palm oil and soybean oil have a trend intensity of 0 [10]. **3.2 Soybean Meal and Soybean** - **Fundamentals**: DCE soybean's daily - session closing price was 4086 yuan/ton with a 1.29% increase, and night - session closing price was 4085 yuan/ton with a 0.74% increase; DCE soybean meal's daily - session closing price was 2895 yuan/ton with a 0.45% increase, and night - session closing price was 2901 yuan/ton with a 0.24% increase. There were also details about spot prices, basis, trading volume, and inventory [11]. - **Macro and Industry News**: CBOT soybeans rose to a one - month high due to optimistic China - US trade sentiment; Brazil's 2025/26 soybean planting completion rate was 24% [11][13]. - **Trend Intensity**: Both soybean meal and soybean have a trend intensity of +1 [13]. **3.3 Corn** - **Fundamentals**: Important spot prices such as the Northeast acquisition average price, Jinzhou closing price, etc.; futures prices, trading volume, open interest, and price spreads of different contracts [15]. - **Macro and Industry News**: Changes in corn prices in different regions, including northern ports, Guangdong Shekou, Northeast, and North China [16]. - **Trend Intensity**: Corn has a trend intensity of 0 [17]. **3.4 Sugar** - **Fundamentals**: Data on raw sugar prices, mainstream spot prices, futures prices, price spreads, and basis [18]. - **Macro and Industry News**: Brazil's sugar production and export data; Conab's adjustment of Brazil's sugar production forecast; China's sugar import data; domestic and international sugar supply and demand forecasts [18][19][20]. - **Trend Intensity**: Sugar has a trend intensity of 0 [21]. **3.5 Cotton** - **Fundamentals**: Futures prices, trading volume, open interest, and price spreads of different contracts; spot prices of different cotton types [23]. - **Macro and Industry News**: Domestic cotton spot market trading, price, and acquisition price conditions; domestic cotton textile enterprise operation conditions; ICE cotton futures situation [24]. - **Trend Intensity**: Cotton has a trend intensity of 0 [26]. **3.6 Eggs** - **Fundamentals**: Futures prices, trading volume, open interest, price spreads, and spot prices in different regions; related feed and livestock prices [27]. - **Trend Intensity**: Eggs have a trend intensity of - 1 [27]. **3.7 Pigs** - **Fundamentals**: Spot prices in different regions; futures prices, trading volume, open interest, and price spreads of different contracts [31]. - **Market Information**: Registration of warehouse receipts and addition of delivery warehouses [32]. - **Trend Intensity**: Pigs have a trend intensity of - 1 [33]. **3.8 Peanuts** - **Fundamentals**: Important spot prices; futures prices, trading volume, open interest, and price spreads of different contracts [35]. - **Spot Market Focus**: Peanut prices and market conditions in different regions such as Henan, Jilin, Liaoning, and Shandong [36]. - **Trend Intensity**: Peanuts have a trend intensity of 0 [37].

Core Insights - Circularity Fuel Company has successfully converted biogas from California dairy farms into syngas using a compact electric processing unit, which is a key raw material for sustainable aviation fuel (SAF) [1] - The cost of this new processing unit is only 1% of traditional steam methane or autothermal reformers, indicating significant economic advancement in renewable fuel production [1] - The success of this demonstration project is expected to help airlines meet SAF replacement requirements, as currently less than 6% of the over 20,000 large livestock farms in the U.S. collect and utilize biogas from manure [1]

Financial Data and Key Metrics Changes - Net sales and revenues decreased by 9% to DKK 12.018 billion, with equipment operations net sales also down by 9% to DKK 10.357 billion [9] - Net income attributable to Deere & Company was €1.289 billion, or $4.75 per diluted share [9] - Operating margin for equipment operations was reported at 12.6% [5] Business Segment Data and Key Metrics Changes - **Production and Precision Ag**: Net sales decreased by 16% year over year to €4.273 billion, primarily due to lower shipment volumes and unfavorable price realization [10] - **Small Ag and Turf**: Net sales were down 1% year over year to €3.025 billion, with a slight decline in shipment volumes offset by positive currency translation [11] - **Construction and Forestry**: Net sales decreased by 5% year over year to DKK 3.059 billion, mainly due to unfavorable price realization [17] Market Data and Key Metrics Changes - In the U.S. and Canada, large ag equipment industry sales are expected to decline by approximately 30% in fiscal year 2025 due to high interest rates and elevated used inventory levels [12] - Small ag and turf industry demand in the U.S. and Canada is projected to be down 10% [13] - European market sentiment is improving, with expectations for industry sales to be flat to down 5% in fiscal year 2025 [14] Company Strategy and Development Direction - The company is focused on disciplined execution amidst challenging market dynamics, managing production costs, and inventory levels effectively [5][6] - There is an emphasis on responding proactively to market downturns and maintaining robust investment levels for future growth [65] - The company aims to build production in line with retail demand as market conditions improve [26][65] Management's Comments on Operating Environment and Future Outlook - Management noted that global uncertainty and high interest rates continue to weigh on customer sentiment, but there are signs of improved demand in certain segments [5][6] - The company remains optimistic about its order books and is well-positioned to respond to demand growth when it returns [7][65] - Management highlighted the importance of managing costs and production efficiency to navigate the current economic environment [30][32] Other Important Information - Tariff costs in the quarter were approximately $200 million, with a forecasted pretax impact of nearly $600 million for fiscal year 2025 [32][33] - The company has seen significant reductions in inventory levels across various segments, positioning itself well for future demand [26][27] Q&A Session Summary Question: Production to retail demand expectations - Management indicated that production levels could align closely with retail sales increases, particularly in large ag, while small ag and turf may see some lift due to underproduction this year [70][73] Question: Early order programs insights - Management noted that planter programs are seeing cautious ordering, while early responses for combines are positive but still early in the cycle [76][79] Question: Pricing and market competition - Management acknowledged competitive pricing pressures but noted positive market responses to recent pricing actions, with expectations for some price moderation in the fourth quarter [97][99] Question: Cash flow guidance variability - Management explained that the cash flow guidance range reflects uncertainties in the market, but they feel confident about inventory levels and retail sales trends [91][94] Question: Tariff impacts and mitigation strategies - Management provided details on the tariff costs and their allocation among business units, emphasizing ongoing efforts to mitigate these impacts [114]

Financial Data and Key Metrics Changes - Second quarter adjusted EBITDA was $138 million, and adjusted net income was $1.54 per share, reflecting strong operations and improving market conditions [4][20] - Total liquidity increased by 23% during the second quarter to $647 million, supported by strong operating cash flows [20] - Year-to-date share count reduced by nearly 8% due to stock repurchases totaling $28 million [8][19] Business Line Data and Key Metrics Changes - Refining segment reported adjusted EBITDA of $108 million in the second quarter, compared to a loss of $14 million in the first quarter [13] - Retail segment adjusted EBITDA increased to $23 million from $19 million in the first quarter, driven by higher fuel margins and same-store sales growth [17] - Logistics segment adjusted EBITDA remained consistent at $30 million, aligning with mid-cycle run rate guidance [16] Market Data and Key Metrics Changes - Hawaii throughput reached a record 88,000 barrels per day, with production costs at $4.18 per barrel [10] - Montana throughput was 44,000 barrels per day, reflecting lower throughput due to a successful turnaround [11] - Washington index averaged $15.37 per barrel, an improvement of approximately $11 from the prior quarter [15] Company Strategy and Development Direction - The company is focusing on low capital, high return projects to improve profitability following the Montana turnaround [6] - A joint venture with Mitsubishi and INEOS was announced, with a $100 million investment to strengthen renewable fuels capabilities [7] - The company aims to achieve annual cost reductions of $30 million to $40 million relative to the previous year [17] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook despite policy uncertainty, citing flexibility and structural cost advantages [8] - The Asian market outlook remains favorable, with expectations of strong cash generation driven by market conditions and reduced capital spending [9] - Management anticipates financial contributions from the joint venture starting in 2026, following the commissioning of the pretreatment unit [29] Other Important Information - Cash from operations during the second quarter totaled $83 million, excluding working capital inflows [18] - The company repurchased $28 million worth of shares during the second quarter, with a total of 5.2 million shares repurchased year-to-date [19] Q&A Session Summary Question: Drivers behind strong capture rates in Hawaii - Management noted that elevated clean product freight rates and improved throughput rates contributed to capture rates exceeding guidance [22][23] Question: Update on SAF joint venture and startup timing - The joint venture discussions have been ongoing, with startup targeted for the second half of the year and expected EBITDA contributions beginning in 2026 [26][29] Question: Performance in The Rockies and excess inventory sales - Management indicated that excess inventory sales contributed to capture rates, with guidance for Q3 remaining at 90% to 100% [32][33] Question: Small refinery exemptions and cash flow implications - Management expects the EPA to follow the law regarding small refinery exemptions, with potential cash flow upside from retroactive receipts [43][46] Question: Sustainability of Singapore market margins - Management highlighted that the Chinese refining fleet's focus on internal demand and integration with petrochemical complexes is key to market dynamics [47][49] Question: Use of excess cash and M&A appetite - The company remains in an excess capital position, with a focus on opportunistic buybacks and internal growth opportunities rather than large-scale M&A [57][59]