Shouchuang Futures: Two Meal Prices Halt Decline and Stabilize

Today, domestic soybean meal and rapeseed meal prices dipped then rebounded, with the main contracts for soybeans and rapeseed meal in September showing a slight rebound and stabilization. On the cost side, the theoretical costs of imported soybeans and rapeseed remain in a consolidation trend, and the June shipment Brazilian soybean CNF premium and discount showed a rebound. The hog market continues to remain weak, and the feed raw material market has slightly weakened to digest the reduced consumption expectations. However, from the situation of the two meals, the cost support still exists, especially for imported soybeans, which provides relatively strong support, so the downside space for prices is limited. Overall, the cost fluctuations for soybeans and rapeseed are limited, and after the previous decline of the two meals digesting weak demand factors, further downside space is limited, with a short-term stabilization and rebound expected. In terms of operations, it is recommended to mainly observe in the short term, while paying attention to the impact of Middle East situation changes on freight rates and market sentiment. (First Capital Futures)