Soybean prices are expected to remain high in the future, putting pressure on the costs of downstream processing companies.

In the past six months, domestic soybean futures and spot prices have continued to rise. Although there has been a recent volatile adjustment in the market, industry insiders still hold a generally optimistic view on the future market. Industry experts and interviewed industry analysts believe that the current global soybean supply and demand situation is generally loose, but the domestic market shows obvious structural contradictions in supply. With multiple factors such as differentiated production levels in major overseas producing countries and geopolitical disturbances, soybean prices are expected to remain high in the future. The upward trend in soybean prices directly affects the cost side of downstream listed companies in soybean deep processing. Ensuring stable production and supply and risk prevention layout have become increasingly critical. In this context, it has become an important choice for relevant listed companies to use the hedging function of the futures market to hedge operational risks against price fluctuations.