The market for protein meal showed a mixed performance on Wednesday.
CBOT soybean futures moved higher, supported by gains in wheat and corn, alongside favorable monthly U.S. soybean crush data.
Both soybean meal and soybean oil futures followed the upward trend.
NOPA figures indicated that U.S. soybean processing in June 2026 reached its highest level since March, exceeding market forecasts.
Global wheat prices surged due to escalating tensions between Russia and Ukraine over key shipping lanes in the Black Sea region.
While weather conditions in the U.S. Midwest remain a concern, forecasts suggest a cooldown and increased rainfall for the coming week.
In Brazil, the National Association of Grain Exporters revised its July soybean export projections upward.
Domestically, protein meal prices traded within a narrow range as bullish and bearish forces intensified.
Spot prices edged slightly higher, leading to a convergence in the basis, even as soybean meal inventories continued to accumulate.
Market focus remains on weather developments in key growing regions and the pace of domestic protein meal stockpiling.
The vegetable oil sector experienced a day of varied movements.
BMD palm oil futures declined on Wednesday, ending a two-day rally, amid a lack of significant market catalysts and subdued sentiment.
Shipping data revealed that Malaysian palm oil exports for the first half of July increased between 4% and 12.4% compared to the previous period.
MPOB raised its reference price for crude palm oil for August while maintaining the export duty at 10%.
Meanwhile, the Indonesian Palm Oil Association released May supply and demand data, showing an estimated 28.12% month-on-month drop in exports, a 7% decrease in production, and a stockpile of 3.042 million tonnes, up 18.9% from April.
Domestic vegetable oil prices found support from a surge in crude oil prices.
However, the upside was limited by high inventory levels, China's move to lift restrictions on Australian canola imports, and expectations of increased future supply.
Going forward, market participants will monitor the shipping situation in the Strait of Hormuz and overall vegetable oil consumption trends.
Live hog futures exhibited a weak performance during the session.
The main September 2609 contract traded weakly, closing down 0.75% at 11,960 yuan per tonne.
Spot prices continued to soften due to insufficient downstream demand.
Data showed the national average daily price fell slightly to 10.96 yuan per kilogram.
Regional prices were mixed, with gains in Guangdong, stability in Shandong, and declines in Sichuan and Liaoning.
With monthly slaughtering progress lagging, producers may still face pressure to release hogs to market, leading to a mix of selling and holding strategies in the near term.
The short-term outlook points to continued weak and range-bound prices.
Egg futures staged a rebound after early weakness.
The September 269 contract, after trading lower initially, recovered to close with a 1.51% gain at 4,432 yuan per 500 kilograms.
The August 2608 contract also rose, closing 1.26% higher.
Spot prices were largely stable nationwide, with minor declines in some southern markets.
Most traders are purchasing based on immediate sales needs.
Current supply-side factors continue to provide underlying support for egg prices.
Looking ahead, as seasonal demand recovers and enters its peak period, a cautiously optimistic view is maintained for spot prices.
After a two-day pullback, the rebound in futures prices warrants attention to market sentiment's impact on trading.
Corn futures maintained a consolidating pattern.
The main September 2609 contract faced resistance around the 40-day moving average, leading to a pullback and a narrowing of its trading range.
In the physical market, prices in Northeast China remained subdued.
While local traders showed a willingness to sell, grain movement was slow as deep-processing plant purchases were largely stagnant and southern buyer demand was limited.
This lack of demand curbed any significant upward price momentum.
In North China, prices were stable to slightly weaker as traders, holding above-average inventories, became more inclined to sell.
Downstream buyers, however, showed little enthusiasm for large-scale procurement, opting instead for hand-to-mouth purchasing.
The overall supply and demand environment appears relatively loose, suggesting stable to soft prices in the short term.
Prices in consumption areas were mostly stable with minor upward adjustments, partly supported by a firmer futures market.
Nevertheless, downstream demand remains weak, with feed mills primarily consuming existing inventories rather than building new stocks, keeping overall trading volume low.
In summary, the corn market is in a stalemate in July, awaiting new direction from weather patterns.
Rising international grain costs due to weather concerns abroad warrant attention, while domestically, market watchers will continue to monitor weather developments, trader selling patterns, and potential policy-related stock releases.
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