Daily Report 130315 2015-03-13

Main contract of domestic gold AU 1506 remained slightly correcting. Pressure was found along 5-day moving average at RMB 238 in short term. The gold is believed to keep dropping afterwards; however, the decrease momentum is gradually lowering. The gold is then believed to rally. Previous short positions opened at RMB 254.5 could be held, with defensive moves prepared along 5-day moving average. The US dollar index dropped when trying to breaking through 100, which bolstered the gold. The newly released economic data is mixed. The retail sales data kept dropping for 3 months. On the whole, the market is waiting for statement before the Fed meeting on interest rate. The overnight gold ETF positions decreased by 20.3 tons since March 1, 2015, indicating the funds’ interest of gold is getting weaker and weaker.
Overnight domestic silver main contract 1506 had a tiny rally, in short term it hits strong support at RMB 3400. Overall, silver price still follows gold, but it is more fluctuating than gold. In terms of the trend, silver price remains bullish but in short term it may rally. Previous short positions which bought in at RMB 3800 should make defense on 5-day moving average at RMB 3450.
Overnight U.S. soybeans have a weak shock, which was impacted by weaken expectation of the soybean exporting demand. This week U.S. soybean exports 168000 tons, which is much less than previous week. U.S. soybean continues fluctuating within 960-100 cents.
In some area, Soybean meal spots slightly increased, the quotation in coastal area is RMB 3000-3050. Oil factory rate of operation is recovering; the supply volume appears in upward trend. Soybean contract no.1 appears weak, the quotation waved.
Yesterday PP futures have a flat open then followed by a upward trend. It opened at RMB 7940 and closed at RMB 8281. The trading volume increased 345000 lots to 895000 lots. The holdings dropped 14366 lots to 252000. About upstream, the propylene price is flat. Current rate of operation closes to previous figure. In terms of spots, today domestic pp markets constantly falling, the price dropped RMB 100-200 per ton.
Like wire drawing, today's mainstream of north China bid in RMB 7950-8200 per ton, east China mainstream quotation in RMB 8100-8300 per ton, south China mainstream quotation in RMB 8200-8400 per ton. According to the quotation, intraday price strongly broke through 5-day, 10-day and 20-day moving average. MACD green column shorten, with a strong upward momentum; current price may fluctuate to find a more obvious direction.

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