Daily Report 280317 2017-03-28
Monday copper market meets obvious bolster at the bottom. Copper price fluctuated at high positon. LME inventory yesterday decreased 1150 tons to 311000 tons. LME actuals discount narrowed $3.5 to discount $23.5. Overall, considering copper market supply and need has turned good, and traditional consumption season comes, recommend long at low position.
Yesterday PP futures opened low and dropped. Opened at 8090, and closed at 7906. Trading volume increased 64248 lots to 374000 lots. Holding volume increased 3308 to 383000 tons. Actuals side, yesterday domestic PP market continued drop tendency with RMB 50-100/ton. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 8100-8350/ton, RMB 7950-8300/ton and RMB8250-8500/ton, respectively. Now average line system changed tendency to downward; expect continue weak tendency.
Nature Rubber
Yesterday Shanghai rubber dropped to point 16000. Till actuals trade time: domestic spots price is 1810-1830(-60); domestic cargo price is 1810-1830(-70)); US RSS spots price is 2100-2160(-100); US RSS cargo price is 2200-2220(-40); Singapore cargo price is 1900-1950(-50); Thai cargo price 1940-2000(-40); mixed rubber price is 15000-15150(-700). Overall, macro side stress aggravated; Shanghai rubber weak tendency is difficult to change.
DCE soybean night section continued drop tendency. Overseas and domestic market are both weak tendency. Northeast China soybean market price continued stable and weak tendency. Coastal district oil plant quotation is RMB 2920-3000/ton. As for operation, Soybean No.1 contract was not stable after the expectation of national inventory auction; recommend observation. Considering weak overseas section and releasing report, recommend short-term operation.
                                                                                    Dong LV (Investment Certificate NO. TZ008452)