Report Industry Investment Rating - No relevant content found Core Viewpoints - In the current Sino-US trade policy environment, there is an expectation of inventory reduction in the fourth quarter, which will raise the center of the soybean meal futures price. The spot market is active with downstream traders and feed mills actively buying, mainly trading on the 10 - 1 basis. Rumors of plant shutdowns support the short - term bullish oscillation of the futures price. However, with the continuous progress of vessel bookings, if the weather is normal, the upward space is limited. Attention should be paid to changes in Sino - US trade policies and the planting area report at the end of the month [6] Summary by Related Catalogs Basis Data - For 43% soybean meal spot basis on June 11th, in Dalian it was - 17 (up 34), in Rizhao - 157 (up 14), in Tianjin - 67 (up 24), in Zhangjiagang - 167 (down 16), in Dongguan - 187 (down 6), in Zhanjiang - 147 (down 6), and in Fangcheng - 167 (down 16). For rapeseed meal spot basis in Guangdong, it was - 128 (up 16) [4] Spread Data - On June 11th, the M9 - 1 spread was - 17, N9 - RM9 was 20, RM9 - 1 was 1200, the spot spread between soybean meal and rapeseed meal in Guangdong was 350 (down 15), and the futures spread of the main contract was 200 (up 7) [5] International Data - The US dollar to RMB exchange rate was 7.1383, the Brazilian soybean CNF premium was 115 (down 62), and the import soybean futures gross profit was - 62 yuan/ton [5] Inventory Data - As of last week, domestic soybean inventory continued to accumulate and was at a relatively high level compared to the same period. Soybean meal continued to accumulate inventory but was still at a low level. With the significant increase in processing and crushing, soybean meal inventory is expected to accumulate more rapidly in June [6] Supply, Demand, and Market Situation - Supply: From May to July in China, the arrival volume of Brazilian soybeans is expected to exceed 10 million tons each month. The current vessel booking progress is 94.4% for June, 80.6% for July, and 33.8% for August. The US soybean planting progress is fast, and the weather in the next two weeks is expected to be favorable for early soybean growth [5][6] - Demand: Judging from the livestock inventory, the supply of pigs is expected to increase steadily before September, the poultry inventory remains high, the cost - effectiveness of soybean meal has significantly improved, and downstream transactions have increased with better delivery [6] - Market situation: The downstream traders and feed mills are actively buying, and the market trading is booming, mainly trading on the 10 - 1 basis. There are rumors of plant shutdowns, which support the short - term bullish oscillation of the futures price [6]