Daily Report 140715 2015-07-14
DCE soybean fluctuates bilaterally, market fundamental side mixes with long and short terms; domestic soybean spot weakens in mainly stabilized trend, dragged from the weakness demand; futures lacks guidance from spot side; tendency in short period still weaken with fluctuation.
Soybean meal is stabilized, soars and boosts from last week spot, market performance is firm; current crucial hammer in market is from supply side, import soybean continuously arrival port made sufficiently supply in recent one to two months; since the volatility range of U.S. market shifts up, crush margins losses, the domestic futures price is likely to continue strong pattern. We recommend take slightly short positions as for operation.
Yesterday PP futures opened up low with fluctuation, opened at 8300 and ended at 8241; trading volume decreased 169,000 lots to 324,000 lots, holding decreased 4,908 lots to 267,000 lots. In upstream, propylene price is flat. As for spots side, yesterday domestic PP price slightly raised and remain in stabilized. Partial petrifaction regions increased ex-work price and enhanced the bolster to market costs. PP futures operated in low price which had limit effect on market mindset. Merchant shipped in market price and partial dealer slightly higher the quotation to observe market reaction; practical demand of downstream plants did not plainly improved, willingness of receiving was low, market investing and trading was thin.
Current main quotation of wires, north market was RMB 8100-8300/ton, east market was RMB 8350-8600/ton and south market was RMB 8400-8600/ton.
As for operation, current hammer at 8400-8500 is obviously, there is high possibility on further weaken volatile recently.

                                                                            Dong LV (Investment Certificate NO. TZ008452)