Daily Report 151214 2014-12-15
Stock Index

Stock index remain fluctuating and correcting last Friday. Securities stocks, as the previous leading stocks, rallied substantially for some time and then fell down. It is believed the upward momentum is still insufficient. Focused investment and growth stocks are pretty active while the Chinext Composite Index rebounds considerably. The seesaw effect takes place then, making stock market in a dilemma. Investors are recommended to be cautious as the trend afterwards is not clear.


The No.1 soybean in Dalian Commodity Exchange rallied last week due to the weak soybean spot. As the price of A 1501 is obviously higher than the cost of warehouse storage, long positions will be further forced to close. Currently, the selling of new soybean is rather slow with quotation around RMB 4260 / ton to RMB 4360 / ton. The soybean meal in Dalian Commodity market is relatively strong resulting from strong soybean meal spot and short of supply in part of area. Around 14 to 15 million soybean is expected to arrive at the harbor from December to January, 2015, which will bring pressure to supply of soybean meal. In terms of operations, stop-profits should be prepared for long positions of soybean meal in Dalian Commodity Exchange. As for No.1
soybean, small amount of short positions are recommended for contracts in far months.


Last week the price of PP futures continue dropping. From the upstream, the price of propylene monomer fell; FOB Korea propylene price dropped $40 to average price $690.5. In terms of devices, the rate of operation is normal. From the spot perspectives, on Friday among the majority markets PP price continues falling, around RMB 100 to RMB 300.
PP futures opened up low with a upward trend, which increased the confidence towards the market. Though the majority merchants still have bearish thoughts, they are active in shipment; they rise up sales level in order to push up their trading volume. Downstream is cautious wait and see; they are less active in buying; the trading and investing level are thin.
For instance of the wire drawing price, today's mainstream of North China bid in RMB 8750-9250 per ton, East China mainstream quotation in RMB 8900-9300 per ton, South China mainstream quotation in RMB 9150-9350 per ton.
                                                                              Dong LV (Investment Certificate NO. TZ008452)