Daily Report 020615 2015-06-02
Copper
On Monday the copper price in domestic and overseas opened up low and volatile narrowly, still lacking the momentum of rebounding. As for fundamental, LME spot agio expanded to $9.5, inventory decreased RMB200. Domestic spot price premiums RMB30-90, market supply tends to loose, downstream is still the on-demand procurement.
On the whole, since the domestic consumer industries entered into off-season in advance, the root cause of copper price hard to rally is lacking of domestic consumers.
As for technology side, copper price remained a downward trend, in a short term LME might test the possibility of $5800, copper price in domestic market may drop to RMB 42,000. Previous short positions are recommended to be held.
 
 
Soybean
Soybean No.1 Contract backed to the previous trading concentrated area, the short term price was hammered by warehouse receipt cost in the upstream and, bolstered by spot in the downstream; previous short positions are recommended to be held.
Soybean meal spot keeps dropping, grease soaring recently which hammered the soybean meal price once again, under the supply pressure, soybean median remaining weak trend.
As for operation, soybean meal remains short position when rebounding and, previous empty form is recommended to be held.
 

Natural Rubber
The Shanghai rubber price yesterday upstream volatility, the spread of No. 9-1 Contract fell sharply. Spot price rose with covering, up to US dollar spot trading period: domestic spot price is RMB 1660-1670 (+30), domestic cargo price is RMB 1630-1640 (+20), quotation and bargain of compounded rubber in domestic US dollar is low, price variation remains stable is $1700-1710 (+10), compounded rubber in RMB is 12300-12400 (+100), Singapore cargo price is RMB 1670-1680 (+20).
In terms of news, inventory in bonded area up to 29 May: natural rubber is 132,100ton, synthetic rubber is 12,900ton, compounded rubber is 23,100ton. 
Gross is 168,100ton which decreased 26,700ton compared with that on 15 May.
The above factors indicated currently there’s no evident found in the variation of micro-policy and natural rubber industrial but, market expressed the China compounded rubber standard seminar might convened again. As for operation, short-term bullish on the dips and pay attention to the prior resistance from high position, anti - hedge of No. 9-1 Contract is in bullish.
 
 
PP
In terms of device, currently operating rate in domestic device is 88%, higher than previous data. In spot side, yesterday domestic PP market remains stable. Partial petrochemical enterprise reduced the ex-factory price which weakens the bolster of market cost. Overnight crude oil price was soared; PP futures in the high position had boosted the market. Under this influence, merchant had made shipment following the trend; downstream manufacturers wait cautiously, there’s no obvious willing of receiving shipment, and the market is in a waiting states.
Main quoted wires prices of north, east and south markets are 8600-8950 yuan/ton, 8850-9200 yuan/ton and 9000-9350 yuan/ton, respectively. Fundamental remain a weak trend.
For operation strategy: current 40-day moving average system indicated strong pressure, it was expected weak volatile would remain in a near term.
 
 
                                                                            Dong LV (Investment Certificate NO. TZ008452)