Shouchuang Futures: Mood fluctuates, soybean meal gives back yesterday's gains

Domestic oilseed and oilseed product varieties generally experienced a correction today after yesterday’s widespread gains, with soybean meal leading the decline, falling over 1%. Overnight, U.S. soybeans showed a rally followed by a pullback; news of accelerated planting in key U.S. soybean-producing regions this week triggered buy-sell arbitrage closing in the U.S. markets between soybeans and corn. Additionally, U.S. soybean oil, after reaching a new high, also saw profit-taking. The decline in U.S. soybeans caused overnight soybean costs to retreat, weakening the support from domestic soybean meal costs. Overall, the stable high-yield situation in South America, good planting weather in North America, and the continued domestic and international fundamentals of ample supply and demand in the domestic spot market suggest that soybean meal does not have strong upward momentum. The market is expected to mainly fluctuate and consolidate after previous oversold conditions. In terms of operations, it is recommended to adopt a wait-and-see approach in the short term, paying attention to whether Trump’s planned visit to China in May can be realized. (First Capital Futures)