According to feed industry sources, Recently, as Chinese soybean buyers have been placing orders for U.S. soybean shipments, coupled with the U.S. Department of Agriculture's November downward revision of U.S. soybean production and inventory, which led to a simultaneous global reduction in soybean production and inventory. Additionally, following severe rainfall during the South American soybean planting season, multiple institutions have lowered their projections for Brazil's soybean output. These factors have supported a genuinely strong upward trend in U.S. soybean futures prices, driving up imported soybean costs and strengthening mills' willingness to raise soybean meal prices.

However, due to the high cost of importing U.S. soybeans, some buyers have refrained from purchasing, resulting in slow sales progress for U.S. soybeans. As soybean harvests continue, supply is gradually increasing. Market concerns that China may fail to meet its procurement targets before year-end due to Brazil's more cost-effective soybeans have caused CBOT soybean futures to peak and retreat. This has driven down imported soybean prices and weakened cost-side support for the soybean meal market.

With temperatures gradually dropping, domestic livestock and poultry farming is approaching its annual peak demand season. Coupled with currently elevated domestic hog and poultry inventories, total feed consumption remains substantial, and demand for soybean meal will gradually increase. Feed and farming enterprises are increasing advance stockpiling to meet robust demand for hogs and poultry. Statistics indicate that since the start of winter, feed producers and traders have significantly increased their stockpiling activities, with recent transactions showing higher volumes. This trend strengthens mills' motivation to maintain soybean meal prices despite poor crushing margins. However, average transaction prices have not sustained upward momentum and instead showed a corrective trend.

Currently, high domestic hog and poultry inventories have led to oversupply and depressed prices, keeping farming operations in a persistent loss state. Hog farming has been universally unprofitable since late July, marking four consecutive months of losses. White-feathered broiler farming has hovered near the break-even point since mid-September. Laying hens have sustained losses since the start of the year, with only a brief two-week profit window before the Mid-Autumn Festival due to rising egg prices. The ongoing losses are dampening farmers' enthusiasm. With high inventory levels and strong demand, the soybean meal inclusion rate in feed may be reduced, leading to lower-than-expected demand from the farming sector and thereby capping soybean meal price gains.

As an integrated internet platform providing benchmark prices, on November 24, the benchmark price of soybean meal on SunSirs was 3,070.00 RMB/ton, an increase of 0.79% compared with the beginning of the month (3,046.00RMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

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