Report Industry Investment Rating - Not provided Core Viewpoints - PP is expected to follow the market sentiment and show a strong and volatile trend in the short - term, driven by low valuation, cold weather and the geopolitical situation in Iran, but the sustainability of the PP rebound should be treated with caution due to limited improvement in the supply - demand pattern and limited spot follow - up [1] - The L - PP spread is expected to decline as plastics have new production capacity coming on - stream recently, with a higher operating rate than PP, and the concentrated demand for plastic mulch has not yet started [1] Summary by Relevant Catalogs Market Analysis - As of the week of January 23, the downstream operating rate of PP rebounded 0.34 percentage points month - on - month to 52.87%, at a neutral level in the same lunar period over the years. The operating rate of plastic weaving, the main downstream of drawstring, dropped 0.56 percentage points month - on - month to 42.04%, and plastic weaving orders continued to decline slightly month - on - month, slightly lower than the same period last year [1] - On January 29, there were few changes in maintenance devices. The operating rate of PP enterprises remained at around 79%, at a low level, and the production ratio of standard drawstring rose to around 27.5% [1][5] - Near the end of the month, petrochemical inventory was depleted rapidly and is currently at a relatively low level in the same period in recent years. The cold weather boosted the demand for diesel for heating, alleviating demand concerns. Coupled with the escalating geopolitical situation in Iran, crude oil prices rose [1] - Recently, the number of maintenance devices increased slightly. The price of downstream BOPP film continued to rebound, but as the Spring Festival holiday approached, the operating rate of downstream plastic weaving continued to decline, and new orders were limited [1] Futures and Spot Market - Futures: The PP2605 contract increased in positions and fluctuated upward, with a minimum price of 6780 yuan/ton, a maximum price of 6898 yuan/ton, and finally closed at 6870 yuan/ton, above the 20 - day moving average, up 1.54%. The open interest increased by 13300 lots to 556684 lots [2] - Spot: Most spot prices of PP in various regions rose. Drawstring was quoted at 6400 - 6910 yuan/ton [3] Fundamental Tracking - Supply: On January 29, there were few changes in maintenance devices. The operating rate of PP enterprises remained at around 79%, at a low level, and the production ratio of standard drawstring rose to around 27.5% [5] - Demand: As of the week of January 23, the downstream operating rate of PP rebounded 0.34 percentage points month - on - month to 52.87%, at a neutral level in the same lunar period over the years. The operating rate of plastic weaving, the main downstream of drawstring, dropped 0.56 percentage points month - on - month to 42.04%, and plastic weaving orders continued to decline slightly month - on - month, slightly lower than the same period last year [5] - Inventory: On Thursday, the early petrochemical inventory increased by 2.5 tons month - on - month to 47.5 tons, 8.5 tons lower than the same lunar period last year. Near the end of the month, petrochemical inventory was depleted rapidly and is currently at a relatively low level in the same period in recent years [5] Raw Material End - Brent crude oil contract 03 rose above 69 US dollars per barrel, and the CFR propylene price in China remained flat at 820 US dollars per ton month - on - month [6]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - PP is expected to fluctuate within a range as the improvement in the supply - demand pattern is limited, downstream order cycles are shortened, and downstream product profits are shrinking. The L - PP spread is expected to decline due to new plastic production capacity and the non - start of concentrated demand for mulch films [1] Summary by Relevant Catalogs Market Analysis - As of the week of January 23, the downstream PP operating rate increased by 0.34 percentage points to 52.87% week - on - week, at a neutral level in the same lunar period over the years. The operating rate of the downstream plastic weaving industry of the main drawstring decreased by 0.56 percentage points to 42.04% week - on - week, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [1] - On January 23, there were few changes in maintenance devices. The PP enterprise operating rate remained at around 80%, at a slightly lower - than - neutral level, and the production ratio of standard drawstring decreased to around 28% [1][4] - Petrochemicals had good inventory reduction in the first and middle ten - days of January, but the recent inventory reduction was average. Currently, petrochemical inventory is at a neutral level in the same period in recent years [1][4] - On the cost side, the US Energy Secretary called for more than doubling global oil production, US crude oil inventories increased more than expected, and gasoline inventories also continued to increase more than expected. Overall oil product inventories continued to rise, and crude oil prices fell [1] - In terms of supply, the new production capacity of 400,000 tons/year of PetroChina Guangxi Petrochemical was put into operation in mid - October, and the number of recent maintenance devices decreased slightly. The price of downstream BOPP film continued to rebound, but as the Spring Festival holiday approached, the operating rate of the downstream plastic weaving industry continued to decline, and new orders were limited [1] Futures and Spot Market Conditions - Futures: The PP2605 contract increased in positions and fluctuated upward, with a minimum price of 6,584 yuan/ton, a maximum price of 6,687 yuan/ton, and finally closed at 6,656 yuan/ton, above the 20 - day moving average, with a gain of 1.48%. The position increased by 12,150 lots to 498,932 lots [2] - Spot: Most spot prices of PP in various regions rose. The drawstring was reported at 6,250 - 6,730 yuan/ton [3] Fundamental Tracking - Supply: On January 23, there were few changes in maintenance devices. The PP enterprise operating rate remained at around 80%, at a slightly lower - than - neutral level, and the production ratio of standard drawstring decreased to around 28% [4] - Demand: As of the week of January 23, the downstream PP operating rate increased by 0.34 percentage points to 52.87% week - on - week, at a neutral level in the same lunar period over the years. The operating rate of the downstream plastic weaving industry of the main drawstring decreased by 0.56 percentage points to 42.04% week - on - week, and plastic weaving orders continued to decline slightly, slightly lower than the same period last year [4] - Inventory: Petrochemical morning inventory on Friday decreased by 40,000 tons to 500,000 tons week - on - week, 35,000 tons higher than the same period last year. Petrochemicals had good inventory reduction in the first and middle ten - days of January, but the recent inventory reduction was average. Currently, petrochemical inventory is at a neutral level in the same period in recent years [4] - Raw materials: The Brent crude oil 03 contract fell below $65/barrel, and the CFR propylene price in China increased by $15/ton to $800/ton week - on - week [4]

Report Summary 1. Report Industry Investment Rating The report does not provide an industry investment rating. 2. Core Views - The US corn market is experiencing a rebound but remains in a bottom - oscillating state due to high production levels despite reduced inventory. The import profit of foreign corn is rising, and the domestic corn market shows regional differences, with Northeast corn being relatively strong and North China corn being weak. The corn spot market is expected to be relatively stable in the short term, and the 03 corn futures will likely oscillate within a narrow range [4][7][9]. - The starch market is mainly influenced by corn prices and downstream inventory preparation. The inventory of corn starch has increased this week. Due to the strong corn price and weak starch price, corporate profitability has declined. The 03 starch futures are expected to oscillate weakly at the bottom [8]. 3. Summary by Directory 3.1 Data - **Futures Market**: Different corn and corn - starch futures contracts show various price changes, trading volume changes, and open - interest changes. For example, the C2601 corn futures contract closed at 2288, down 5 (-0.22%), with a trading volume of 1,778 (down 74.10%) and an open interest of 18,650 (up 1.49%) [2]. - **Spot and Basis**: Corn spot prices vary by region, with some prices stable and others slightly decreasing. Starch spot prices are relatively stable, and the basis of both corn and starch shows different values in different regions. The spreads between different futures contracts of corn, starch, and cross - varieties also show changes [2]. 3.2 Market Judgment - **Corn**: The US corn is in a bottom - oscillating state. The domestic corn market has regional differences, with Northeast corn being strong due to low supply and farmer reluctance to sell, while North China corn is weak due to increased supply. The domestic breeding demand is stable, and the downstream feed enterprise inventory has increased. The market is concerned about the seasonal selling pressure of Northeast corn before the Spring Festival and the downstream inventory - building situation [4][7]. - **Starch**: The number of trucks arriving at Shandong deep - processing plants has increased, leading to a weakening of Shandong corn prices. The starch inventory has increased this week. The starch price mainly depends on corn prices and downstream inventory preparation. The by - product prices are strong, and the spot price difference between corn and starch is low. The 03 starch futures follow the corn price and oscillate at the bottom [8]. 3.3 Trading Strategies - **Unilateral**: The 03 US corn has support at 430 cents per bushel, and it is recommended to build long positions in 07 corn at low prices [10]. - **Arbitrage**: It is recommended to wait and see [11]. 3.4 Corn Options The option strategy is a short - term cumulative put strategy with rolling operations [12]. 3.5 Related Attachments The attachments include multiple charts showing the North Port corn flat - warehouse price, corn 05 contract basis, corn 5 - 9 spread, corn starch 5 - 9 spread, corn starch 05 contract basis, and corn starch 05 contract spread, providing historical data for reference [16][18][20][23].

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints - The report presents a comprehensive overview of the agricultural and energy futures markets, including overnight and spot prices, fundamental information, macro news, fund flows, and arbitrage tracking. It also provides data on domestic and international supply and demand, as well as weather conditions in major producing regions [1][2][4][6][9][11][12][15] 3. Summary by Directory 3.1 Overnight Market - The closing prices and daily/overnight percentage changes of various futures contracts, including Malaysian palm oil, Brent crude, US crude, US soybeans, US soybean meal, and US soybean oil, are presented. Additionally, the latest prices and percentage changes of several currency indices are provided [1] 3.2 Spot Market - The report shows the spot prices, basis, and basis changes of DCE palm oil, DCE soybean oil, and DCE soybean meal in different regions of China, as well as the CNF premiums and quotes for imported soybeans from different countries [2] 3.3 Key Fundamental Information 3.3.1 Producing Area Weather - In Brazil, rainfall in eastern São Paulo and Minas Gerais decreased last week but is expected to return this week; weather conditions in other regions are generally favorable for soybean growth. In Argentina, soil moisture in the major soybean - producing areas is mostly suitable for soybean growth [4] 3.3.2 International Supply and Demand - From December 1 - 25, 2025, Malaysian palm oil production decreased by 9.12% month - on - month, while export volume increased according to different institutions. In Brazil, the nutritional growth of soybeans in Rio Grande do Sul is satisfactory, and the yield is expected to increase significantly. In Argentina, the soybean planting rate as of December 23 was 77% [6][7] 3.3.3 Domestic Supply and Demand - On December 26, the total trading volume of soybean oil and palm oil decreased, while the trading volume of soybean meal increased. The actual soybean crushing volume of domestic oil mills in the 52nd week of 2025 decreased, and the estimated crushing volume in January 2026 increased year - on - year. Pig farming is in a loss, and the prices of agricultural products have changed slightly [9][10] 3.4 Macro News 3.4.1 International News - Japan's November unemployment rate remained stable at 2.6%. Japan's December Tokyo CPI and core CPI annual rates decreased, and the unadjusted CPI monthly rate was negative [11] 3.4.2 Domestic News - On December 26, the US dollar/Chinese yuan exchange rate decreased (the yuan appreciated). The central bank conducted 7 - day reverse repurchase operations, with a net injection on the day and a net withdrawal for the week. The profit of national industrial enterprises from January to November increased slightly year - on - year, but decreased in November [12] 3.5 Fund Flows - On December 26, 2025, the futures market had a net inflow of 34.966 billion yuan, with different inflow and outflow situations in various sub - markets [15] 3.6 Arbitrage Tracking - Not provided in the content

Report Industry Investment Rating - No relevant information provided Core Viewpoints - The urea market opened flat and trended lower today, with weak intraday oscillations. The spot price continued to decline, and the futures showed weak rebound. The market sentiment was poor. The high - level supply and high inventory situation restricted the upward movement of urea prices. Although there was a chance of rebound later, the loose market pattern had not reversed, and the market lacked driving forces [1]. Summary by Related Catalogs Strategy Analysis - The urea market opened flat and trended lower, with weak intraday oscillations. The spot price continued to fall, and the futures rebounded weakly. The market sentiment was poor. The daily urea production was expected to remain at a high level, suppressing the urea price. The demand side saw an increase in the operating rate of compound fertilizer factories, but the growth rate slowed down. The terminal demand was weak, and the inventory was high. The inventory continued to increase, which restricted the upward movement of urea prices. There was a chance of rebound later, with attention paid to the pressure around 1730 yuan/ton, but the loose pattern had not reversed [1]. Futures and Spot Market Conditions - **Futures**: The urea main contract 2601 opened at 1681 yuan/ton, closed at 1670 yuan/ton, with a decline of 0.65%. The trading volume was 286,823 lots (+5,335 lots). Among the top 20 institutional positions, long positions increased by 3,015 lots, and short positions increased by 2,691 lots. On September 18, 2025, the number of urea warehouse receipts was 8,188, a decrease of 80 compared to the previous trading day [2]. - **Spot**: The spot price continued to decline. The ex - factory transaction price of small - grain urea in Shandong, Henan, and Hebei was mostly in the range of 1600 - 1630 yuan/ton. Some factories in Hebei quoted 1670 - 1680 yuan/ton, but these high - priced factories mainly fulfilled export orders [1][4]. Fundamental Tracking - **Basis**: The mainstream spot market quotation and the futures closing price both decreased. Based on the Henan region, the basis strengthened compared to the previous trading day, and the basis of the January contract was - 20 yuan/ton (+1 yuan/ton) [8]. - **Supply Data**: On September 18, 2025, the national daily urea production was 196,000 tons, an increase of 5,400 tons compared to the previous day, and the operating rate was 82.82% [9]. - **Downstream Data**: From September 12 to September 18, the capacity utilization rate of compound fertilizer was 38.63%, an increase of 0.81 percentage points compared to the previous week. The weekly average capacity utilization rate of melamine in China was 56.78%, an increase of 1.4 percentage points compared to the previous week [13].