Daily Report 230317 2017-03-23
DCE soybean night section was weak. Soybean No.1 district rolled back after rally. Soybean oil and meal both went weak. Northeast China partial district soybean price continued decreased. West Heilongjiang district purchasing price decreased to RMB 3800/ton. As for operation, Soybean No.1 contract was not stable after the expectation of national inventory auction; recommend observation. Soybean meal is difficult to rally; if price keeps stable at 2850, recommend long position.
Macro Economy
Domestic, China Securities News quoted informed sources reported bank mortgage ratio may become the important content of China 's central bank macro - prudential assessment system assessment this year. According to the newspaper reported that 3 months after the promulgation of Beijing property market "3 • 17 New Deal", if prices still unilateral rise, the government will consider the introduction of more stringent policies. However, in terms of our point of view, a single restriction of a single market will inevitably lead to the flow of funds to another market. The past few years, China's asset allocation turns into a fan is because the control is always focus on a single market but not the total amount. Although we expect the central bank will not easing monetary policy, but in fact we want the central bank to tighten some monetary policy.      
                                                                                    Dong LV (Investment Certificate NO. TZ008452)