1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report International - The current US soybean market shows a volatile and slightly bullish trend. The USDA February report maintained the US soybean production and an ending inventory estimate of 350 million bushels, setting a tone of loose supply and demand. The record - high production expectations in South America further strengthen the global supply pressure, capping the US soybean price. However, strong domestic crushing demand in the US provides a key bottom support. The core driving force comes from biofuel policies. The EPA's blending requirements and the Treasury's tax credit policy bind soybean oil demand to the biofuel industry, directly boosting soybean crushing demand. US soybean exports face structural difficulties, lacking competitiveness against South American soybeans. Uncertainties in Sino - US trade relations and tariff policies disrupt trade normalization, causing difficulties for US soybean farmers in market access and sales. Overall, US soybean prices will fluctuate and trend slightly higher under the influence of high inventory pressure, strong domestic demand support, and weak export prospects [4][97]. Domestic - The current domestic soybean market shows a pattern of strong international and weak domestic performance, with prominent structural contradictions. The market supply is abundant, and the high arrival volume of imported soybeans has led to historically high inventories at ports and oil mills, putting great pressure on domestic prices. However, high import costs due to external factors form a solid bottom support, but the transmission of this cost - driven support to domestic prices is not smooth. The core contradiction lies in the serious inversion between high raw material costs and weak downstream product prices, squeezing oil mill crushing profits and causing widespread losses in the industry. Driven by factors such as the continuous arrival of previously purchased soybeans and inventory digestion pressure, oil mill operating rates are higher than historical averages, further exacerbating the oversupply of products like soybean meal and suppressing spot prices and basis. Overall, domestic soybean prices are in a volatile range, with industry hedging and high inventory pressure on the upper side and import cost support on the lower side. The short - term weak pattern is difficult to reverse fundamentally [5][98]. 3. Summary According to the Table of Contents 1 Market Review 1.1 Soybean Spot Prices Remained Stable - In late February 2026, the spot price of second - grade imported soybeans in Zhangjiagang was 3,920 yuan/ton, unchanged from the end of January 2026. The spot price of third - grade domestic soybeans in Nenjiang, a soybean - producing area in Heilongjiang, was 4,060 yuan/ton, with no month - on - month change [9]. 1.2 The Futures Prices of Soybean Products Diverged - Since February 2026, the futures price of soybean No. 1 has risen significantly, from 4,380 yuan/ton to over 4,700 yuan/ton, leading the spot price. The futures price of soybean No. 2 has trended slightly higher, rising slightly from 3,550 yuan/ton to 3,580 yuan/ton. The futures price of soybean meal followed the rebound of US soybean futures prices, rising from 2,767 yuan/ton to 2,833 yuan/ton, but its overall performance was weaker than that of US soybeans due to relatively loose domestic supply [11]. 2 The USDA Report was Slightly Bearish and the Weather in South America had an Increasing Impact 2.1 US Soybean Data Remained Unchanged and High Inventory Set a Tone of Loose Supply and Demand - On February 11, 2026, the USDA released its February monthly supply and demand report, which made no adjustments to all key estimates of US soybeans for the 2025/26 season. The production, yield, sown and harvested areas of US soybeans in the 2025/26 season remained the same as the January estimates. The ending inventory remained at 350 million bushels, at a six - year high. The export estimate of US soybeans remained at 1.575 billion bushels, not being raised due to remarks from President Trump about China potentially increasing purchases by 8 million tons. The USDA's decision not to adjust the estimates was to reserve room for adjustment for upcoming major policies. The high ending inventory of US soybeans set a tone of loose supply and demand, suppressing the rebound of US soybean futures prices. There were still differences in the market regarding the US soybean inventory. Some market analysis institutions believed that if US soybean exports increased slightly in the future, the inventory might drop to 275 - 320 million bushels [15][16]. 2.2 The Weather in South American Producing Areas had an Increasing Impact and Production was Subject to Adjustment - In the 2026 South American soybean growing season, the weather in Brazil showed significant regional differentiation and harvesting progress was hindered. The production adjustment expectation first increased and then had potential risks. In Brazil, the weather patterns in major soybean - producing areas such as Mato Grosso and Rio Grande do Sul were different. In Mato Grosso, the harvesting progress was fast from late January to mid - February, but rainy weather since mid - January slowed down the harvesting, and there were still a large number of unharvested soybeans in late - sown areas. In Rio Grande do Sul, drought and high temperatures persisted, and farmers began to estimate yield losses. In Argentina, the soybean sowing was almost completed, and the growth was in a critical period. The uneven distribution of rainfall threatened the yield. The production adjustment expectation decreased due to weather uncertainties. Overall, the Brazilian soybean production was expected to remain high, but there were risks of quality impact from rainfall during the harvesting period and potential yield reduction in the south. The Argentine soybean production was expected to be significantly lower than the previous year, and if the drought continued, the yield might fall below 46 million tons [20][23][24]. 2.3 US Soybean Crushing was in a Historically High - growth Period and Biofuel Policies Provided Demand Space - In January 2026, the soybean crushing volume of members of the National Oilseed Processors Association in the US reached 221.564 million bushels, a year - on - year increase of 10.6%, setting a record high for the same period. The USDA predicted that the crushing volume in the 2026/27 season would reach a new high of 2.655 billion bushels. The US soybean crushing profit remained at a high level. As of the end of January 2026, the crushing profit based on USDA data was $2.87 per bushel, significantly higher than $2.28 per bushel at the end of December 2025. In February 2026, the US Treasury Department issued the proposed rules for the 45Z tax credit, which was beneficial for soybean oil - based biofuels. The market was also closely watching the new proposal to be finalized by the EPA by the end of March 2026. The strong domestic crushing demand in the US offset the negative impact of the record - high production of Brazilian soybeans, keeping the US soybean price in a slightly bullish pattern [25][26][27]. 2.4 US Soybean Exports Faced Structural Difficulties and the Competition between North and South American Soybeans Began - The core pressure on US soybean exports came from China's shift in procurement focus. As of February 19, 2026, the total sales of US soybeans to China in the 2025/26 season were 10.664 million tons, a year - on - year decrease of 49.1%. The US soybean price was not competitive compared to Brazilian soybeans. In addition, US domestic policies disturbed the export expectation. The US soybean export was in a difficult situation of high prices and poor sales, and its recovery depended on the return of US trade policies to stability and predictability and the substantial repair of Sino - US soybean trade relations. South American soybean exports were in a strong expansion cycle driven by record - high supply. Brazil was expected to export a record 112 million tons of soybeans in 2026, and the export volume in February was estimated to be 11.4 - 11.46 million tons, a significant year - on - year increase. Although the overall export trend in South America was strong, short - term export rhythms were affected by factors such as weather, logistics, and domestic policies [32][33][34]. 3 The Domestic Soybean Supply was Abundant and Oil Mill Crushing Profits were Severely Squeezed 3.1 Import Cost Provided Support but the Structural Weakness Remained - Import costs provided bottom support for domestic soybeans, but the transmission of this support was not smooth. The domestic soybean market was weak due to abundant supply, high inventory, and poor demand. The high inventory of soybeans at ports and oil mills, along with the expected supply from the auction of imported soybeans, increased the supply pressure. The cost - high and product - price - low situation led to widespread losses in domestic oil mills. In the short term, domestic soybean prices would continue to fluctuate in a range, with the upper limit being industry hedging and high inventory pressure and the lower limit being import cost support. The future trend depended on factors such as the digestion speed of high inventory, the recovery of breeding profits, the implementation of the imported soybean auction policy, and the progress of Sino - US trade consultations [45][46]. 3.2 Oil Mill Operating Rates were Higher than Historical Averages and Crushing Profits were Severely Squeezed - The crushing profit was a key indicator for oil mills, and the industry was currently under great pressure, with widespread losses. The root cause of the losses was the high cost of imported soybeans and the weak prices of downstream products. For example, the crushing profit of US West soybeans for the March shipment was - 377.52 yuan/ton, and that of US Gulf soybeans was - 328.46 yuan/ton. Brazilian soybeans were the only bright spot in terms of profit, with a positive profit of 155.20 - 186.29 yuan/ton for the April - May shipment. After the Spring Festival, oil mill operating rates were higher than historical averages, not driven by profit but by factors such as inventory pressure. High operating rates led to the passive accumulation of soybean meal inventory, further suppressing prices and basis, and exacerbating the industry's difficulties. The future recovery of oil mill operating rates and profits depended on a significant decline in import costs and a substantial recovery in domestic downstream breeding demand [64][65]. 4 The Reduction of Pig Production Capacity was Slow and Prices Accelerated to Reach the Bottom after the Festival 4.1 The Pig Market was Weak during the Peak Season and Prices Accelerated to Reach the Bottom after the Festival - In February 2026, the domestic pig market showed a weak pattern of under - performance during the peak season and accelerated price decline after the festival. The national average ex - factory price of ternary live pigs dropped from about 12 yuan/kg at the beginning of the month to below 11 yuan/kg by late February, reaching a new low. The decline was driven by the imbalance between supply and demand [68]. 4.2 The Total Pig Supply was Abundant and the Reduction of Production Capacity was Slow - As of the end of December 2025, the national inventory of breeding sows was 39.61 million, 101.6% of the normal level, providing a solid foundation for pig supply in the first half of 2026. In January, some large - scale farms slightly increased their production capacity, and the willingness to actively cull sows decreased, slowing down the reduction of production capacity. The high average weight of pigs at the end of January and the large proportion of pigs weighing 90 - 140 kg in the inventory indicated an abundant supply in the future. The increase in piglet prices and the recovery of replenishment enthusiasm would further delay the reduction of production capacity [69]. 4.3 Pig Farming was in Deep Loss and Consumption Declined Rapidly after the Festival - Pig farming was in deep loss. As of early February, the average ex - factory price of live pigs was 12.5 yuan/kg, the pig - grain ratio was 5.26:1, and the average loss per pig was 130 yuan. The loss was due to the serious inversion between cost and price. On the demand side, although the slaughtering enterprise operating rate increased slightly before the Spring Festival, the demand was still weak. After the festival, consumption entered the off - season, and the support for pig prices weakened. The low price of poultry meat as a substitute also failed to stimulate pork consumption. On February 6, the Ministry of Agriculture and Rural Affairs strengthened the comprehensive regulation policy of pig production capacity, which was expected to suppress the disorderly expansion of production capacity in the short term and promote the transformation of the industry to large - scale and high - quality development in the long term [81][83]. 5 Conclusion - The international and domestic viewpoints are the same as the core viewpoints of the report, emphasizing the complex situation of the US soybean market and the weak pattern of the domestic soybean market, as well as the difficult situation of the domestic pig market [97][98].

1. Report Industry Investment Ratings There is no information provided regarding the report industry investment ratings in the given content. 2. Core Views of the Report - A-shares had a slight rebound on low volume, with market trading volume dropping to the 2 trillion level, and market participation enthusiasm declined rapidly. It is recommended to view this market as a phased adjustment and pay attention to changes in trading volume [1][14]. - The much lower-than-expected US PPI in August led to a resurgence in interest rate cut expectations, an increase in AI capital expenditure, and an upward trend in market risk appetite. The Dow underperformed the Nasdaq and the S&P [2][16]. - Although the anti - involution policy has achieved some results, the terminal demand of residents remains weak, and the low - price phenomenon still exists. The bond market is currently in a headwind period, and it is recommended to manage risks [3][19]. - The prices of various commodities show different trends. For example, the price of palm oil has a complex situation due to factors such as production, inventory, and export; the price of iron ore is expected to be volatile in the short - term and under pressure in the long - term; the price of copper is expected to be volatile and slightly stronger in the short - term [4][5][31][62]. 3. Summary According to the Directory 3.1 Financial News and Comments 3.1.1 Macro Strategy (Stock Index Futures) - Jiangxi Province issued measures to develop producer services, aiming to increase the proportion of producer service added - value in service industry to about 52% by 2030 [13]. - China's CPI in August decreased by 0.4% year - on - year, and PPI decreased by 2.9% year - on - year. A - shares had a slight rebound on low volume. It is recommended to reduce long positions in stock index futures [14]. 3.1.2 Macro Strategy (US Stock Index Futures) - OpenAI signed a $300 billion computing agreement with Oracle, which will start implementation in 2027 [15]. - The US PPI in August was much lower than expected. Interest rate cut expectations increased, but the market may be more volatile due to economic data and interest rate cut expectation swings [16]. 3.1.3 Macro Strategy (Treasury Bond Futures) - The central bank conducted 304 billion yuan of 7 - day reverse repurchase operations on September 10, with a net investment of 74.9 billion yuan. The bond market is currently in a headwind period, and it is recommended to have a bearish view in the short - term [19][20]. 3.2 Commodity News and Comments 3.2.1 Agricultural Products (Soybean Meal) - Argentina's new - crop soybean planting area is expected to decrease by 4.3% to 17.6 million hectares. The market is waiting for the USDA's export sales report and monthly supply - demand report. The futures price is expected to be volatile [21][22][23]. 3.2.2 Agricultural Products (Soybean Oil/Rapeseed Oil/Palm Oil) - Some senators in the US are trying to prevent Trump from changing renewable fuel obligations. Canada is discussing relaxing tariffs on Chinese electric vehicles. Malaysia's palm oil inventory increased in August, and its export in September decreased. It is recommended to be bullish in the medium - to - long - term but wait for policy stability [24][26][27]. 3.2.3 Black Metals (Coking Coal/Coke) - The price of coking coal in the Changzhi market is weak. The supply has basically returned to normal, and the demand side is under pressure. The futures price is expected to be volatile in the short - term [28][29]. 3.2.4 Black Metals (Steam Coal) - The price of steam coal in the northern port market was stable on September 10. The demand is weak, and the price is expected to be volatile in a narrow range [30]. 3.2.5 Black Metals (Iron Ore) - Japanese companies are acquiring stakes in an iron ore project in Western Australia. The price of iron ore is expected to be volatile in the short - term and under pressure in the long - term due to factors such as finished product inventory and terminal demand [31][32]. 3.2.6 Agricultural Products (Hogs) - Some pig - raising companies' production costs have decreased. It is recommended to short near - month contracts and be bullish on far - month contracts [33][34][35]. 3.2.7 Black Metals (Rebar/Hot - Rolled Coil) - Many projects started in August. The steel price is expected to be weakly volatile due to factors such as supply recovery and uncertain terminal demand [36][37][38]. 3.2.8 Agricultural Products (Corn Starch) - The inventory of corn starch is decreasing seasonally. However, the price is affected by factors such as weak supply - demand and regional price differences [40]. 3.2.9 Agricultural Products (Corn) - The spot price of corn shows a differentiated trend. It is recommended to have a bearish view in the medium - term [41]. 3.2.10 Agricultural Products (Red Dates) - The price of red dates in the market is stable. The new - season production is uncertain. It is recommended to wait and see [42][44]. 3.2.11 Non - Ferrous Metals (Lead) - The price of lead is affected by factors such as the decline in recycled lead production, high inventory, and weak demand. It is recommended to wait and see on the long side and consider positive arbitrage opportunities [45]. 3.2.12 Non - Ferrous Metals (Zinc) - The CZSPT released the purchase guidance price for imported zinc concentrates. The domestic fundamental situation is weak, and the overseas inventory is at a low level. It is recommended to wait and see on the long side and consider positive arbitrage opportunities [47][48]. 3.2.13 Non - Ferrous Metals (Polysilicon) - A company is selling a stake in its subsidiary. The production of polysilicon in September is limited, but the downstream resistance to high - priced silicon materials is strong. It is recommended to short the PS2511 contract on rallies and consider reverse arbitrage opportunities [49][50][51]. 3.2.14 Non - Ferrous Metals (Industrial Silicon) - The trading rules of industrial silicon futures have been adjusted. The production and inventory situation is complex. The price is expected to be in the range of 8200 - 9200 yuan/ton, and it is recommended to focus on range - bound trading opportunities [52][53]. 3.2.15 Non - Ferrous Metals (Nickel) - The LME nickel inventory increased on September 10. The price is expected to be volatile in the short - term, and it is recommended to conduct light - position range - bound trading [54][55]. 3.2.16 Non - Ferrous Metals (Lithium Carbonate) - Two companies are about to reach an agreement on joint lithium mining. The export of lithium spodumene in Brazil decreased in August. It is recommended to have a bearish view, be cautious in short - term shorting, and consider reverse arbitrage opportunities [57][58][59]. 3.2.17 Non - Ferrous Metals (Copper) - Some countries are promoting copper - related mining and investment projects. The price of copper is expected to be volatile and slightly stronger in the short - term. It is recommended to buy on dips and wait and see on arbitrage [60][61][63]. 3.2.18 Energy Chemicals (Liquefied Petroleum Gas) - The price of LPG is expected to be volatile and slightly stronger in the short - term due to factors such as the increase in Middle East FOB prices and the impact of sanctions on freight [64][65][66]. 3.2.19 Energy Chemicals (Crude Oil) - The US EIA crude oil inventory increased. The price of crude oil is expected to be volatile in a range in the short - term due to factors such as geopolitical risks and supply - demand [67][68][69]. 3.2.20 Energy Chemicals (PX) - The price of PX continued to rise. It is expected to be in a de - stocking pattern in the medium - to - long - term. It is recommended to adjust the position on the long side and try positive arbitrage between months [70][71][72]. 3.2.21 Energy Chemicals (PTA) - The sales of polyester filaments in Jiangsu and Zhejiang increased locally. The PTA price is expected to be volatile and adjusted in the short - term due to factors such as supply - demand and inventory [73][74][75]. 3.2.22 Energy Chemicals (Caustic Soda) - The price of caustic soda in Shandong decreased slightly. The demand is weak, and the supply is stable. It is expected that the spot price increase may end soon, and the downward space of the futures price is limited [76][77]. 3.2.23 Energy Chemicals (Pulp) - The price of imported wood pulp is mainly stable. The market is expected to be weakly volatile due to the poor fundamental situation [78][79]. 3.2.24 Energy Chemicals (PVC) - The price of PVC powder is slightly adjusted. The fundamental situation is under pressure in the short - term, but the downward space is limited [80][81]. 3.2.25 Energy Chemicals (Urea) - The inventory of urea enterprises increased slightly. The export game is fading, and it is recommended to pay attention to the downward risk [82][83][84]. 3.2.26 Energy Chemicals (Soda Ash) - The price of soda ash in the Shahe area is stable. It is recommended to short on rallies and pay attention to supply - side disturbances [85][86][87]. 3.2.27 Energy Chemicals (Styrene) - The inventory of styrene in the East China main port decreased. The short - term price is expected to be volatile, but the potential over - stocking problem in the long - term needs attention [88][89][90]. 3.2.28 Energy Chemicals (Float Glass) - The price of float glass in Hubei was stable on September 10. It is recommended to pay attention to the arbitrage opportunity of going long on glass 2601 and shorting on soda ash 2601 [91][92]. 3.2.29 Shipping Index (Container Freight Rate) - A container ship accident occurred in the US. The container freight rate is expected to decline. It is recommended to hold short positions in the October contract [93].

Summary of Darling Ingredients Conference Call Company Overview - Darling Ingredients is a global leader in rendering biofuels and food ingredients, with significant transformations in its business model through strategic acquisitions, capacity expansions, and the Diamond Green Diesel joint venture [1] Industry Insights - The regulatory environment is currently in a transition phase, with potential changes in decarbonization policies and support for the agriculture community [2][3] - The Renewable Volume Obligation (RVO) is expected to return, with projections around 5.25 billion gallons, which is constructive for both Darling and American agriculture [5][6] - The company processes approximately 15% to 18% of the world's slaughtered animal byproducts into fats and proteins, indicating a strong position in the market [9] Key Regulatory Developments - The 45Z tax credit is being extended, which is beneficial for producers and the agriculture sector [4] - The RVO is anticipated to increase significantly, which will require additional feedstock supply, potentially impacting prices positively [12][18] - Concerns about imports affecting domestic prices and the RINs market were raised, emphasizing the need for careful management of feedstock regulations [22][24] Financial Performance and Projections - The first quarter results were weaker than expected, but the company remains optimistic about future performance, particularly in the second half of the year [41][65] - The feed segment is expected to see improved margins as fat prices recover, with projections of $950 million in run rate without further price increases [41][66] - The company anticipates a core business EBITDA of approximately $1.8 to $2 billion, excluding future growth from new initiatives [73][74] Strategic Initiatives - The company is focusing on the development of Sustainable Aviation Fuel (SAF), which is expected to be a significant growth driver [30][38] - A joint venture in the food segment aims to enhance product offerings and market reach, with a focus on high-margin specialty ingredients [47][56] - The NexTata platform is being developed to capitalize on health and wellness trends, with a strong growth trajectory anticipated [60][62] Market Dynamics - The company is optimistic about the long-term demand for animal-based protein, particularly in emerging markets like South America [68] - M&A activity is viewed as opportunistic, with a focus on improving the balance sheet before pursuing acquisitions [70][71] Conclusion - Darling Ingredients is well-positioned to leverage regulatory changes and market dynamics to enhance its growth potential, particularly through its SAF initiatives and strategic partnerships in the food segment [1][30][56]