Daily Report 171214 2014-12-17
Soybean

No.1 soybean in Dalian Commodity Exchange is strong in near months but weak in far months. The price of new soybean in Hei Longjiang remains around RMB 4300 / ton. The price of soybean futures is below RMB 4160 / ton. Price of soybean contract A 1501 is still higher than the cost of warehouse storage, leaving limited space for price to grow. If large amount of soybean is sold by farmers, there will still be space for price to shrink. Soybean meal in Dalian Commodity Exchange dropped significantly. Considering the huge amount of imported soybean from December, 2014 to January, 2015, pressure on supply side is rather heavy. In terms of operation, stop-profit should be set for long positions of soybean meal in Dalian Commodity Exchange. Small amount of short positions of No.1 soybean in far months are also recommended.


PP

Yesterday PP futures opened up low with waving, opened at RMB 7729 and closed at RMB 7793. The trading volume dropped 200000 lots to 564000 lots; the holdings increased 8936 lots to 209000 lots. From the upstream, overnight FOB Korea propylene dropped $20 to average price $670.5. From devices perspective, current capacity utilization is normal; there is no sign of the new centralized maintenance; the supply is stable.
In terms of spots, yesterday the majority pp markets are slumping continually. CPC east China, south China and northeast China, also included Sinopec south China etc. majority regions have lowered their ex-factory price continually, which suggests it has even less supports to the market.
From the upstream, overnight FOB Korea propylene dropped $70 to average price $600.5. From devices perspective, current capacity utilization is normal; there is no sign of the new centralized maintenance; the supply is stable. In terms of spots, yesterday the majority pp markets stopped slumping. For instance of the wire drawing price, today's mainstream of North China bid in RMB 8750-9150 per ton, East China mainstream quotation in RMB 8850-9200 per ton, South China mainstream quotation in RMB 9100-9350 per ton.
                                                                                   Dong LV (Investment Certificate NO. TZ008452)