Daily Report 270515 2015-05-27
Macro Economy
Current data had increased over expectation, reviving from real estate market is still powerful. Increasing of orders indicated output in remaining Q2 may rally; the impact from low oil price to America may end up. While U.S dollar soaring under the influence, it hammer the gold and crude oil price.
In domestic market, Yujun Zhang - the chairman assistant of CSRC indicated in the first session of China - China-Asia capital market forum that in the second half year, the fund recognition of mainland and Hongkong; Shenzhen-Hong Kong Stock Connect program will be implemented. Another source said: China will consider cancel the total limit of Shanghai-Hong Kong Stock Connect program and, may as well raise the limit. This adjustment is expected to be announced along with opening of Shenzhen-Hong Kong Stock Connect program. Pressure of economic downturn forced issuing the reform measures, capital market accelerates will bring motivation for our country economic revive.
Soybean No 1. contract remain slightly rally trend, domestic soybean spot partially rose, contract 1509 in RMB 4450-4500/ ton had larger sell delivery pressure, in this position still attract the sell side delivery market get involved. Although recent market speculating the sowing area of domestic soybean has been reduced, the decreasing range is waiting for affirm. The spot will face sales pressure; maintain the short opportunity above the cost of warehouse receipt.
Soybean meal spot continues decreasing, soybean distribution price at port had decreased, under the material cost fell back and hammer of supply, soybean meal trend is hard to have continuously rebound; grease appreciated which indirectly hammer the enthusiasm of soybean meal price rebound. Meal price will remain weak trend.
As for operation, soybean meal remain mentality of shorten when facing rebound, keep holding previous empty single.
Yesterday PP futures came off early highs, it opened at RMB 8485 and closed at RMB 8658; the trading volume increased 458,000 lots; the holding increased 1764 lots to 484,000 lots. About upper stream, propylene price hold the line. On the spots side, yesterday domestic PP market trend remain stable, partial field price increased RMB 50-100/ ton. Partial petrifaction producer price keeps increasing for bolster the supply cost, merchant thereupon increase the shipment price, it shall be more cautious when billing and covering. The downstream manufacturers has stronger attitude in regards of the price increasing, firm offer still base on order to meet the rigid demand, desire of stocking and covering limited terminal volume following.
For instance of the wire drawing price, today's mainstream of North China bid in RMB 9000-9150 per ton, East China mainstream quotation in RMB 9200-9400 per ton, South China mainstream quotation in RMB 9200-9400 per ton. According to current market quotation, current price heavily fell through 60-day average, and MACD green column extend further which suggest that there could be a downward trend later on.

                                                                         Dong LV (Investment Certificate NO. TZ008452)