Multiple factors drive the rise in domestic soybean futures prices

Domestic soybean futures prices continue to strengthen, breaking through 4,600 yuan/ton. Yesterday, domestic soybean futures prices rose for the third consecutive trading day, surpassing the 4,600 yuan/ton mark. On February 12, the main contract of Dalian Commodity Exchange’s soybean No. 1 closed at 4,613 yuan/ton, up 94 yuan/ton or 2.08% from the previous day, and up 226 yuan/ton or 5.15% from February 9, reaching a new high in a year and a half. After the market opened on February 13, soybean No. 1 continued to rise, reaching a high of 4,695 yuan/ton. Multiple factors are driving the rise in domestic soybean futures prices. First, post-holiday replenishment demand from enterprises and traders’ confidence in the market remain strong, maintaining a bullish stance. Second, long positions are concentrated, with net long positions in soybean No. 1 increasing significantly, pushing futures prices higher. Currently, the spot market is closed, and futures prices have diverged from the fundamentals of the spot market. Market news indicates that due to the recent sharp increase in soybean No. 1 prices, some enterprises are purchasing Russian soybeans, with procurement quantities of 30,000 to 50,000 tons. (National Grain and Oil Information Center)