The monthly crushing data released by the US Department of Agriculture shows that US soybean meal inventories increased to 462,916 short tons at the end of November, reaching a 12-month high and higher than the 345,312 short tons in October.

The inventory of soybean meal in the United States increased to 462,916 short tons, reaching a 12-month high and a month on month increase of 34.1%, indicating a significant oversupply. This will lead to downward pressure on spot soybean meal prices, as high inventory reflects weak demand, especially in the feed industry where consumption is insufficient. Combined with the soybean meal futures market, such as the main contract 2605 on the Dalian Commodity Exchange (closing price of 2,754 RMB/ton, settlement price of 2,746 RMB/ton, daily decline of 13 points, and an increase in holdings of 27,494 lots), the news of inventory surge may exacerbate market bearish sentiment, pushing futures prices further down. Investors should pay attention to short opportunities.

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