First Venture Futures: Major bearish factors largely realized, cuisine sector stabilizes with fluctuations

Today, vegetable oil meal continues to fluctuate within a narrow range, with the ICE market following a slight correction in US soybean oil on Friday, and the short-term performance remains resilient. Along with China’s increased purchase of soybeans for shipping, the market shows a pattern of internal strength and external weakness, with crushing margins narrowing. Based on last Friday’s prices and a 15% tariff to calculate cost and profit, the crushing profit for soybean meal delivery in March has already turned to -20 yuan/ton. We understand that the negative impact on crushing margins has largely been realized. Future price fluctuations are expected to revert to cost fluctuations and the pace of spot supply improvement. It is anticipated that vegetable oil meal prices will have limited volatility before the holiday in the short term. Going forward, it is still recommended to watch for buying opportunities on vegetable oil meal and oil meal ratio pullbacks. (First Capital Futures)