Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The domestic soybean purchase and shipping profit is poor, the domestic market valuation is low. With the expectation of China's purchase of US soybeans, the import cost is expected to rise, and the futures market is expected to rebound to repair the crushing profit, showing a volatile and strong trend. However, the expected loose global soybean supply pattern limits the rebound height of the futures market. Attention should be paid to the subsequent Sino - US policies, USDA report adjustments, and the driving evolution brought by South American weather changes [9]. 3. Summary by Relevant Catalogs 3.1 Basis and Spread Data - **43% Soybean Meal Spot Basis**: On November 6th, the basis in Dalian was 82, up 55; in Tianjin it was 12, up 25; in Rizhao it was - 8, up 45; in Zhangjiagang it was - 8, up 35; in Dongguan it was - 48, up 25; in Zhanjiang it was - 18, up 35; in Fangcheng it was - 28, up 25 [6]. - **Rapeseed Meal Spot Basis**: In Guangdong, it was 76, down 34 on November 6th [6]. - **Soybean Meal - Rapeseed Meal Spread**: The spot spread in Guangdong was 519, down 17; the futures spread of the main contract was 457, up 45 [7]. 3.2 Supply Situation - **US Soybeans**: The USDA currently estimates the US soybean stock - to - consumption ratio for the 25/26 season at 6.9%, with the expected yield of 53.5 bushels per acre potentially being lowered and the export expectation having room for an upward adjustment. The US soybean supply - demand balance is expected to be tight [7]. - **Brazilian Soybeans**: As of October 25th, the Brazilian soybean sowing rate was 34.4%, compared to 21.1% last week, 37.7% in the same period last year, and a five - year average of 42.5%. The southern part of Rio Grande do Sul in Brazil is expected to be relatively dry, and attention should be paid to the impact of the La Nina weather pattern [8]. - **Domestic Supply**: In November, domestic soybean meal is expected to start destocking, but the domestic soybean meal supply in the fourth quarter is still expected to be loose. The far - month purchase and shipping progress is slow [9]. 3.3 Demand Situation - **Livestock and Poultry**: In the short term, livestock and poultry are expected to maintain high inventory levels, and the capacity reduction is not obvious, which supports feed demand. However, the current breeding profit is in a loss state, and national policies tend to control the inventory and weight of pigs, which may affect the far - month supply [9]. - **Downstream Transactions**: Recently, the downstream transactions of soybean meal have been cautious, but the pick - up performance has been good [9]. 3.4 Inventory Situation - **Soybean and Soybean Meal**: Domestic soybean and soybean meal inventories are at historical highs, and it is expected that the inventory will start to decline in November. The number of days of soybean meal inventory for feed enterprises has dropped to a low level [9].