Downstream demand falls short of expectations, and feed companies' soybean meal inventories continue to rise.

Last week, physical inventories of feed companies across China generally increased, with significant growth nationwide, especially in the markets of Shandong and Henan, Guangdong, and North China. Specifically, domestic oil mills continued to operate at high levels, with insufficient pace in destocking, and the downward trend in soybean meal inventories did not persist, leaving supply under pressure. Downstream demand underperformed expectations, and feed companies’ inventories and basis levels were already relatively full from previous stockpiling, so current rolling replenishments are maintained. As the stocking window gradually shortens, feed companies are slightly accelerating their end-of-year pace, mainly adjusting with a small increase in inventory days. According to a sample survey of 50 feed companies across major regions in China by Mysteel Agricultural Products, as of February 6, 2026 (Week 6), the physical soybean meal inventory of feed companies nationwide was 12.37 days, up 1.04 days from the previous period and 3.83 days from the same period last year. (Mysteel)