Daily Report 211114 2014-11-21
Soybean

In domestic market, contracts of No.1 soybean in Dalian Commodity Exchange in near months are strong while contracts in far months weak. Bearish sentiment is still rather strong. Soybean meal corrects after dropping for several days. Soybean in foreign market drops due to selling of positions. Besides, the amount of imported soybean arriving at harbor is increasing, which drags down the soybean spot. Soybean spot in quite a few regions slipped RMB 20 to RMB 40 / ton yesterday. Specifically, quotation of soybean spot in Southern China is RMB 3300 to RMB 3350 / ton. Quotation of soybean spot in Shandong area is RMB 3450 / ton. The pre-sale price of soybean spot in December is around RMB 3200 / ton. In terms of operations, short-positions could be taken for soybean meal at this stage. As for No.1 soybean, stop-profit should be set for part of short positions in far months.


PP

Yesterday PP futures opened at RMB 9717 then waving in a downward trend, which closed at RMB 9639. The trading volume dropped 91182 lots to 215000 lots. The holdings dropped 4018 lots to 160000 lots. Last night, Korea FOB down by $15; the average price is $1075.5 per ton. For devices, the current capacity utilization has barely changed compared with the early Nov. In terms of spot, among most market pp price remain narrow consolidation trend, roughly about RMB 50 per ton. Most Petrochemical regions continue to cut their ex-factory price; which has less support towards market cost.
The price of PP opened at high but followed with a downward trend; to some extent it hammered the market. Most merchants are operating in low inventory; they mainly order based on the sales. For instance of the wire drawing price, today's mainstream of North China bid in RMB 10100-10350 per ton, East China mainstream quotation around RMB 10300-10450 per ton, South China mainstream quotation in RMB 10450-10600 per ton. Currently the price of contract 1501 is around the first line of former support level of RMB 9550-9600. Narrow waving will remain for short term.
                                                                                     Dong LV (Investment Certificate NO. TZ008452)