Morning Insight：July 1，2026

Morning Insight:July 1, 2026 LinlinGaoCertification：Z0002332gaolinlin@gtht.com Yu Chen Wu (Contact)Certification：F03133175 wuyuchen@gtht.com Main Body Soybeans:Prices remain range-bound following a largely anticipated USDAreport. According to the USDA's June 30 report, US soybean planted areafor the new crop is estimated at 85.40 million acres, broadly in linewith the market expectation of 85.37 million acres and up from 84.70million acres in the March Prospective Plantings report, representing a5% increase from last year. As of June 1, 2026, US old-crop soybean Lithium Carbonate:Futures rebounded sharply yesterday, with the most-active contract extending gains through the afternoon session and confirmation of supply-side developments, alongside continued support On the supply side, market expectations for the resumption of productionat the Jiantiawo lithium mine continued to strengthen. Given that thefutures market had already largely priced in the anticipated supplyincrease, the release of the key approval news helped alleviate bearish Looking ahead, market divergence between bulls and bears is likely tointensify, with lithium carbonate prices expected to remain highlyvolatile within a broad trading range. Investors should closely monitorthe actual pace of production resumptions at major producers, inventory Open Interest Source：iFind, GUOTAIJUNAN FUTURESResearch Source：iFind, GUOTAIJUNAN FUTURESResearch Source：iFind, GUOTAIJUNAN FUTURESResearch Source：iFind, GUOTAIJUNAN FUTURESResearch News Highlights: 1. China reported continued improvement in its water use efficiency in Last year, China's water consumption per 10,000 yuan (1,468 U.S. dollars)of gross domestic product (GDP) declined 4.5 percent year on year. And In 2025, China's total water resources reached 2.72 trillion cubic The total water use in 2025 amounted to 594.45 billion cubic meters. Ofthe total, domestic water use accounted for 15.8 percent at 93.66 billion Compared with 2024, total water use increased by 1.65 billion cubicmeters. Specifically, domestic water use rose by 980 million cubic In 2025, the per capita comprehensive water use reached 423 cubic metersand water consumption per 10,000 yuan of GDP stood at 42.4 cubic meters. (Source: Xinhua) 2. Chinese state-owned enterprises (SOEs) and state-controlledenterprises reported combined profits of nearly 1.73 trillion yuan (about During this period, these enterprises' total operating revenue came in atroughly 32.82 trillion yuan, down 0.7 percent year on year, according to Their debt-to-asset ratio stood at 65.5 percent at the end of May, the This year's government work report released in March states that thecountry will formulate and implement plans for further deepening SOE and Last week, Vice Premier Zhang Guoqing called for deepening reform ofstate-owned capital and SOEs, making them stronger, better and bigger, (Source: Xinhua) 3. China's purchasing managers' indexes (PMIs) improved in June as the The PMI for the manufacturing sector rose from 50 of the previous monthto 50.3 in June, returning to expansion territory and marking its second- The data suggested the overall level of economic activity picked up this A PMI reading above 50 indicates expansion, while a reading below 50 Guotai Junan Futures Co., Ltd. (hereinafter referred to as "the Company") is qualified to conduct investment consultingbusiness in the futures market, as approved by the China Securities Regulatory Commission (Approval No. [2011]1449). The views and information contained in this report are intended solely for the reference of the Company’s professionalinvestors. This report is not intended to target or violate any laws and regulations of any region, country, city, or other legaljurisdiction. Due to the difficulty in restricting access to this report, we apologize for any inconvenience this may cause. If you Analyst Statement The author(s) of this report hold a futures investment consulting qualification granted by the China Futures Association or possessesequivalent professional competence. The author(s) strive to ensure that the report is independent, objective, and fair. Thisreport solely Disclaimer The information in this report is derived from publicly available sources, but the Company does not guarantee the accuracy,cohesiveness, or reliability of such information. The research, opinions, and forecasts contained in this report reflect theCompany'sjudgment as of the date of the report's release. The prices of the underlying futures analyzed in the report may fluctuate, and past The research services mentioned in this report may not be suitable for individual clients and do not constitute private consulting advice forclients. Clients should consider whether any opinions or suggestions in this report are appropriate when applied to their specific situation.Under no circumstances do the research or opinions expressed in this report constitute investment advice to any in