Daily Report 070415 2015-04-07
Soybean

During the tomb-sweeping day holiday, the U.S. market had only one trading day; U.S. soybean continues the slightly falling trend, which is impacted by profit taking and technical selling reasons. DCE soybean no.1 contract broke through RMB 4000, which is impacted by the spots price continues falling. Currently in northeast local spot price keeps slumping, Heilongjiang area surplus grain remains around 50%. The soybean meal continually fluctuated violently; the futures quotation appears stronger than it is in the foreign market. It is because the spot price is firm and the inventory level remains low. However domestic demand level is not changing, the inventory level in Guangdong and Guang xi area is under great pressure. In addition, in the future there will be more soybean arrived, so the supply demand will be the main reason leads to the bearish market.


PP

Last week PP futures opened up in high position then followed with downward trend, which is impacted by low operation rate domestically and petrochemical supports the price; previous price slowly increasing but due to the positive impact from Iran’s nuclear negotiations; the futures price dropped. In terms of upstream, FOB Korean propylene current price is $995.5 per ton. For devices, current operation rate remain the same as former.
For spots, since the PP futures price increased, current source is limited, the spots price is increasing. For instance of the wire drawing price, today's mainstream of North China bid in RMB 8700-8900 per ton, East China mainstream quotation in RMB 9000-9200 per ton, South China mainstream quotation in RMB 9000-9200 per ton. From the quotation perspective, on Friday the price slumped dramatically, the price returned to RMB 8000-8300. We suggest to wait and see the support effectiveness at RMB 8000.
                                                                           Dong LV (Investment Certificate NO. TZ008452)