Report Title - Palm Oil: Supply and Demand in Producing Areas Are Both Strong, Focus on Buying at Low Levels; Soybean Oil: Lack of Drivers from US Soybeans, Pay Attention to Subsequent Domestic Purchases [2] Report Date - August 12, 2025 [1] 1. Industry Investment Rating - Not provided in the report 2. Core Viewpoints - For palm oil, the supply and demand in producing areas are both strong, and the strategy is to buy at low levels; for soybean oil, there is a lack of drivers from US soybeans, and attention should be paid to subsequent domestic purchases [2] 3. Summary by Relevant Catalogs 3.1 Fundamental Tracking 3.1.1 Futures Market - Palm oil主力: Day - session closing price was up 2.65%, night - session closing price was up 0.20%, with 567,374 lots traded (an increase of 125,153) and 299,985 lots held (a decrease of 5,729) [3] - Soybean oil主力: Day - session closing price was up 0.67%, night - session closing price was down 0.38%, with 164,012 lots traded (a decrease of 40,472) and 335,019 lots held (a decrease of 29,250) [3] - Rapeseed oil主力: Day - session closing price was up 0.15%, night - session closing price was up 0.33%, with 194,113 lots traded (an increase of 713) and 126,040 lots held (a decrease of 14,440) [3] - Malaysian palm oil主力: Day - session closing price was up 3.06%, night - session closing price was down 0.27% [3] - CBOT soybean oil主力: Day - session closing price was up 0.91% [3] 3.1.2 Spot Market - Palm oil (24 - degree, Guangdong): The price was 8,980 yuan/ton, down 50 yuan/ton [3] - First - grade soybean oil (Guangdong): The price was 8,650 yuan/ton, with no change [3] - Fourth - grade imported rapeseed oil (Guangxi): The price was 9,570 yuan/ton, down 30 yuan/ton [3] - Malaysian palm oil FOB offshore price: The price was 1,060 dollars/ton, with no change [3] 3.1.3 Basis and Spread - Palm oil (Guangdong) basis was - 238 yuan/ton; soybean oil (Guangdong) basis was 194 yuan/ton; rapeseed oil (Guangxi) basis was - 18 yuan/ton [3] - Rapeseed - palm oil futures主力 spread: The previous trading day was 370 yuan/ton, and the day before was 594 yuan/ton [3] - Soybean - palm oil futures主力 spread: It was - 778 yuan/ton, compared with - 592 yuan/ton previously [3] - Palm oil 9 - 1 spread was - 20 yuan/ton; soybean oil 9 - 1 spread was 16 yuan/ton; rapeseed oil 9 - 1 spread was - 5 yuan/ton [3] 3.2 Macro and Industry News - MPOB: Malaysia's palm oil ending inventory in July increased 4.02% to 2.113 million tons, production increased 7.09% to 1.812 million tons, exports increased 3.82% to 1.309 million tons, and imports decreased 12.82% to 61,000 tons [4] - AmSpec: Malaysia's palm oil exports from August 1 - 10 were 453,230 tons, a 23.67% increase from the same period last month [6] - Indonesia: Trade authorities are asking palm oil producers to increase local market sales under the DMO plan, aiming to lower prices, and the DMO level should be maintained at 175,000 tons per month by the end of the year [6] - Indonesia plans to implement the B50 biodiesel mandatory blending policy in 2026, but it may be difficult to start in January, and a series of tests will be carried out [6] - USDA crop growth report: As of the week ending August 10, 2025, the good - to - excellent rate of US soybeans was 68%, the flowering rate was 91%, and the pod - setting rate was 71% [6] - Abiove: In June 2025, Brazilian factories processed 4.55 million tons of soybeans, produced 3.47 million tons of soybean meal and 930,000 tons of soybean oil, with ending inventories of 23.28 million tons of soybeans, 2.68 million tons of soybean meal, and 480,000 tons of soybean oil [7] - Secex: Brazil exported 2,774,453.27 tons of soybeans in the first week of August, with an average daily export volume 27% higher than that of the whole month of August last year [7] - CCC: Canada exported 651,106 tons of rapeseed, 223,217 tons of rapeseed oil, and 459,023 tons of rapeseed meal in June 2025. As of June, the 2024/25 annual exports were 8.911907 million tons of rapeseed, 3.127944 million tons of rapeseed oil, and 5.369241 million tons of rapeseed meal [7] - APK - Inform: Lowered the forecast of Ukraine's soybean production this year to 5830,000 tons from the previous 6260,000 tons [8] 3.3 Trend Intensity - Palm oil trend intensity was 1; soybean oil trend intensity was 1, with the range of trend intensity being integers in the [- 2,2] interval [9]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The soybean and meal market is mixed with both long and short factors. The domestic soybean import cost is in a state of small - scale upward oscillation due to a single supply source. The direction of Sino - US trade relations and new variables on the supply side need to be monitored [3]. - The oil market is supported by factors such as the US biodiesel policy draft, low inventory in India and Southeast Asian producing areas, and the expected B50 policy in Indonesia. However, the upside space is restricted by multiple factors, and it is expected to fluctuate [9]. - The price of Zhengzhou sugar futures may continue to decline in the future, considering the increasing import supply, high import profit, and the expected increase in domestic planting area in the next season [12]. - The cotton market is under short - term bearish pressure due to the weak downstream consumption, low operating rate, and the failure of the Sino - US economic and trade agreement to be finalized [15]. - The egg market may experience short - term fluctuations, but in the medium - term, opportunities for short - selling after a rebound should be focused on due to the large supply scale [17]. - For the pig market, medium and long - term contracts are recommended to go long on dips, and attention should be paid to inter - month reverse spread opportunities for far - month contracts [20]. 3. Summary by Relevant Catalogs Soybean/Meals - **Important Information**: Due to Trump's call for China to buy soybeans, US soybeans rose while domestic soybean meal declined. The domestic soybean meal spot basis was stable on Monday. The soybean crushing volume is expected to increase this week, with a significant increase in soybean inventory and a slight decrease in soybean meal inventory last week. The US soybean is undervalued and in a state of oversupply, and the domestic soybean import cost is rising slightly. Attention should be paid to the USDA monthly report on Tuesday evening [3]. - **Trading Strategy**: Against the background of global protein raw material supply surplus, the upward momentum of soybean import cost is insufficient. The domestic soybean meal market is in a seasonal supply surplus, and it is expected that the spot end may start to destock in September. It is recommended to go long at the low end of the cost range and pay attention to the spread between soybean meal and rapeseed meal 09 contracts [5]. Oils - **Important Information**: From August 1 - 10, Malaysia's palm oil exports increased by 23.67% compared with the same period last month. Indonesia plans to implement the B50 biodiesel mandatory blending policy in 2026, but it may be difficult to start in January. Malaysia's palm oil production in July increased by 7.09% month - on - month, and the inventory increased by 4.02% [7]. - **Trading Strategy**: The oil market is supported by multiple factors, but the upside space is restricted. The palm oil market may maintain stable inventory in the 7 - 9 months and has a rising expectation in the fourth quarter due to the B50 policy, but it should be viewed as fluctuating [9]. Sugar - **Important Information**: On Monday, the Zhengzhou sugar futures price continued to fluctuate. The spot prices of sugar groups in Guangxi and Yunnan remained unchanged, and the mainstream quotes of processing sugar factories varied. The number of ships waiting to load sugar at Brazilian ports and the quantity of sugar waiting to be shipped increased slightly. In July, Brazil's sugar exports to China decreased [11]. - **Trading Strategy**: With the continuous increase in import supply in the second half of the year, the sales space of domestic sugar is squeezed. The futures price of Zhengzhou sugar is likely to continue to decline [12]. Cotton - **Important Information**: On Monday, the Zhengzhou cotton futures price continued to fluctuate. The spot price of Xinjiang machine - picked cotton decreased slightly. The operating rates of spinning and weaving factories declined, and the cotton commercial inventory decreased [14]. - **Trading Strategy**: The Sino - US economic and trade agreement has not been finalized, and the downstream consumption is weak. The cotton market is short - term bearish [15]. Eggs - **Important Information**: The national egg prices were mostly stable, with a few areas rising slightly. The supply was generally sufficient, and the downstream digestion speed was average [16]. - **Trading Strategy**: The supply of eggs is large, and the egg price in the peak season is weaker than expected. The short - term market may fluctuate, and medium - term attention should be paid to short - selling opportunities after a rebound [17]. Pigs - **Important Information**: The domestic pig prices showed a mixed trend, with some areas rising, some falling, and some remaining stable. The market supply and demand are in a game, and the pig prices may be mainly stable [19]. - **Trading Strategy**: The spot price is weak while the futures price is strong. Medium and long - term contracts are recommended to go long on dips, and attention should be paid to inter - month reverse spread opportunities for far - month contracts [20].

Report Summary 1. Investment Ratings The report does not provide an overall industry investment rating. 2. Core Views - Palm oil: With the repeated macro - sentiment, it is advisable to build long positions at low levels [2]. - Soybean oil: It will fluctuate at a high level, and attention should be paid to the Sino - US trade agreement [2]. - Soybean meal: Due to good exports and the rise of US soybeans, the Dalian soybean meal may follow and rebound [2]. - Soybean: During the position transfer period, the market will fluctuate [2]. - Corn: It will operate weakly [2]. - Sugar: It is in an oscillation period [2]. - Cotton: It will fluctuate in a narrow range [2]. - Eggs: There is a rebound sentiment in the spot market [2]. - Pigs: The trading volume is poor, and the reverse spread strategy should be maintained [2]. - Peanuts: Attention should be paid to the weather in the producing areas [2]. 3. Summary by Commodity Palm oil - **Fundamentals**: The closing price of the palm oil main contract was 8,950 yuan/ton during the day session with a decline of 0.22%, and 9,012 yuan/ton at night with an increase of 0.69%. The trading volume decreased by 112,797 hands, and the open interest decreased by 27,119 hands. The spot price in Guangdong increased by 50 yuan/ton, and the basis was 50 yuan/ton [4]. - **News**: Malaysian palm oil giant SD Guthrie Berhad expects the crude palm oil price to stabilize at around 4,000 ringgit per ton for the rest of the year, supported by Indonesia's biodiesel policy [5][6]. Soybean oil - **Fundamentals**: The closing price of the soybean oil main contract was 8,406 yuan/ton both during the day and at night, with no change. The trading volume increased by 51,881 hands, and the open interest decreased by 49,208 hands. The spot price in Guangdong increased by 50 yuan/ton, and the basis was 264 yuan/ton [4]. - **News**: As of July 31, 2025, the net increase in US soybean oil export sales was 0.7 million tons, meeting expectations [10]. Soybean meal - **Fundamentals**: The closing price of DCE soybean meal 2509 was 3,031 yuan/ton during the day with an increase of 0.13%, and 3,036 yuan/ton at night with an increase of 0.53%. The trading volume of soybean meal in the main producing areas was 9.6 million tons per day, and the inventory was 97.76 million tons per week [15]. - **News**: On August 7, CBOT soybeans rose due to strong export sales data. As of July 31, 2025, the net sales volume of US soybeans in the 2024/25 and 2025/26 fiscal years exceeded expectations [17]. Corn - **Fundamentals**: The closing price of C2509 was 2,267 yuan/ton during the day with an increase of 0.53%, and 2,260 yuan/ton at night with a decrease of 0.31%. The trading volume decreased by 44,239 hands, and the open interest decreased by 37,908 hands. The spot price in Jinzhou decreased by 10 yuan/ton [18]. - **News**: The northern corn collection price remained stable, and the Northeast enterprise corn price declined slightly [19]. Sugar - **Fundamentals**: The raw sugar price was 16.03 cents per pound, the mainstream spot price was 5,950 yuan/ton, and the futures main - contract price was 5,667 yuan/ton [21]. - **News**: Brazil's central - southern sugarcane crushing progress accelerated, and India's monsoon precipitation was higher than the long - period average. CAOC predicted the domestic sugar production, consumption, and import volume for the 24/25 and 25/26 fiscal years [21][22]. Cotton - **Fundamentals**: The closing price of CF2601 was 13,835 yuan/ton during the day with a decrease of 0.11%, and 13,825 yuan/ton at night with a decrease of 0.07%. The trading volume decreased by 52,459 hands, and the open interest decreased by 2,804 hands. The spot price of cotton in most regions changed slightly [25]. - **News**: The domestic cotton spot trading was sluggish, and the ICE cotton futures fell due to the rising US dollar and weak new - crop exports [26][27]. Eggs - **Fundamentals**: The closing price of egg 2509 was 3,391 yuan/500 kg with an increase of 1.16%, and the closing price of egg 2601 was 3,576 yuan/500 kg with a decrease of 1.41%. The spot prices in major producing areas remained stable [32]. Pigs - **Fundamentals**: The spot prices in Henan, Sichuan, and Guangdong decreased. The closing prices of futures contracts such as LH2509, LH2511, and LH2601 increased year - on - year. The trading volume of LH2509 decreased, while that of LH2511 increased. The market is under pressure, and the reverse - spread strategy is maintained [35][37]. Peanuts - **Fundamentals**: The spot prices of peanuts in major producing areas were mostly stable, with the price of Sudan refined peanuts increasing by 200 yuan/ton. The closing prices of PK510 and PK511 increased slightly. The trading volume and open interest of the futures market increased [39]. - **News**: New peanuts in some areas are gradually on the market, and the current price is stable. Attention should be paid to the weather in the producing areas [40].