Daily Report 181214 2014-12-18
Soybean

Overnight U.S. soybean edged up; the trading and investing in the market are thin. DCE soybean no.1 continues falling; Fresh soybean price in Heilongjiang province remains around RMB 4300 per ton; futures soybean price remains under RMB 4160 per ton.
The current price of contract 1501 still higher than the cost of spots warehouse warrant. Hence there is limited space for the price to increase. DCE soybean meal has an obvious call back for two straight days. Under the expectation of high volume import soybean will arrive this month or Jan. 2015, the supply may suffer a certain level of pressure; in short term, domestic environment strongly pressing on the soybean meal callback.
In terms of operation, short DCE soybean meal in the short term; soybean no. 1 in back months remains bearish strategy.


PP

Yesterday PP futures opened at a flat price and followed with waving. It opened at RMB 8320 and closed at RMB 8335. The trading volume increased 643000 lots to 1589000 lots; the holdings increased 54560 lots to 497000. For the upstream, yesterday crude oil price rallied; WTI crude oil price increased $0.54 to the average price $56.47 per bucket; Brent oil price increased $1.17 to average price $61.18 per bucket; ethylene price remains the same.
In terms of operation, current rate of operation is stable, and so does the supply. For instance of the wire drawing price, today's mainstream of North China bid in RMB 9100-9300 per ton, East China mainstream quotation in RMB 9300-9400 per ton, South China mainstream quotation in RMB 9300-9500 per ton. According to the fundamentals, the volume of demand is warming up, but if it could continue further still need more time to approve it.
                                                                                  Dong LV (Investment Certificate NO. TZ008452)