Sino-US Leaders' Call Boosts US Soybeans, Prices Rise in Response

On the evening of February 4th, a phone call took place between the US and Chinese leaders. Trump posted that China is considering increasing soybean purchases by 8 million tons, and the expected demand increase has significantly boosted US soybean prices. However, Brazil faces strong selling pressure, with Brazilian farmers actively selling, leading to a wider decline in basis and premium/discount prices. Overall, the game between cost support and ample raw material supply has intensified. Meanwhile, domestic upstream inventories are high, factory supplies are sufficient, and pre-holiday stockpiling is nearing its end, resulting in insufficient demand support. Zhuochuang Information expects short-term soybean meal spot prices to stabilize with a slight increase and narrow fluctuations. (Zhuochuang Information)

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