Daily Report 280415 2015-04-28
Overnight U.S. soybean closed up, which is impacted by the expectation of export demand being increased. In domestic market, the soybean spots price remained increasing; recently the demand of trading increased and the famers are busy with spring plowing which leads to limited grain resource gets into the market, so the spots price dramatically increased; for now in Heilongjiang providence the purchasing price of grain has increased to RMB 4000 per ton; in short term due to limited grain resource is going to bring up the price even further; but in middle term, since there is relatively high volume of surplus grain, in the future it will still be a problem to sell out the left over; hence we suggest holding long positions of soybean contract no. 1 in long term.
Soybean meal spots price in the majority areas remain stable, we believe that soybean meal futures price may hardly rally in short term, therefore we suggest it will keep waving weak. In terms of operation, we suggest holding short positions in middle term.
Yesterday PP futures price increased; it opened at RMB 8705 and closed at RMB 8886; the trading volume increased 201,000 lots to 855,000 lots; the holding increased 11,286 lots to 504,000 lots. In upper stream, FOB Korean propylene price dropped $10 to average price $995.5 per ton. The rate of operation remains the same.
For instance of the wire drawing price, today's mainstream of North China bid in RMB 9350-9500 per ton, East China mainstream quotation in RMB 9400-9550 per ton, South China mainstream quotation in RMB 9500-9600 per ton.
Dong LV (Investment Certificate NO. TZ008452)