Daily Report 080415 2015-04-08
Main contract of domestic gold AU 1506 increased to a high level and then dropped in the night session. Strong pressure was found at RMB 244.5 in short term. However, 30-day moving average at RMB 241.5 provide bolster to the gold. The moving averages indicate the gold will begin to choose its trend afterwards. In terms of operations, the gold may rally in short term, but there is still strong pressure. Sound investors are recommended to focus on the operational opportunities after the region between RMB 240 and RMB 244.5 is broken through. The US February job vacancy on JOLTS is higher than expected, indicating a higher active job-quitting rate. The gold was down slightly while the US dollar index is testing the performance at 98. Attention should be paid on the Fed March meeting minutes being released on 2 am Thursday. The overnight gold ETF decreased 2.39 tons, which makes a drop of 4.18 tons in the past two days, to 733.06 tons. It is believed the funds are not holding an optimistic view of the gold.
Main contract of domestic silver AG 1506 narrowly fluctuated in the night session. The moving averages indicate the silver will begin to choose its trend afterwards. In terms of operations, the silver is still following the trend of gold, correcting between RMB 3630 and RMB 3560. Sound investors are recommended to focus on the operational opportunities after this region is broken through.
Stock Index
The Xinhua News Agency published an article which supports the stock market. It is believed the current bull market is due to not only the energy released by revolution, but also policies adopted by the government. The Chinese stock market has gone through bear market for years. It is believed this upward trend will continue increasing. Every time when the stock falls, the bolster is strong enough to push up the stock market. Till now, 633 listed companies in Shanghai and Shenzhen stock market have released their business report of Q1. Among all those companies, 57.7% of which got a positive outcome, which supports the bull market.
Overnight U.S. soybean price dropped for three straight days, which is impact by the supply pressure of South America new soybean. DCE soybean contract no.1 price is waving under RMB 4000, spots price continues dropping; 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.
Yesterday PP futures opened up high then followed with a downward trend. It opened at RMB 8300 and closed at RMB 8228; the trading volume dropped 66000 lots to 598000 lots; the holding dropped 6346 lots to 45000 lots. From the upstream, FOB Korean propylene price increased $5 to average price $1000.5 per ton. In terms of spots, yesterday domestic pp price increased slightly. PP futures price is moving along low position, which leads a certain level of pressure.
For instance of the wire drawing price, today's mainstream of North China bid in RMB 8800-9000 per ton, East China mainstream quotation in RMB 8900-9100 per ton, South China mainstream quotation in RMB 9150-9250 per ton. We suggest to wait and see the support effectiveness at RMB 8000-8100.
Dong LV (Investment Certificate NO. TZ008452)