Daily Report 200715 2015-07-20
Soybean
DCE soybean price fluctuated with overseas market and, slumped under the influence of weakened soybean No.1 contract spot; bid price from Heilongjiang area slipped in last week, inventory from merchants was high, the actual trading in market was thin, partial merchants reduced the quotation for rushing shipment; current futures price was in a dilemma of raising and falling, lacked guidance from substantial subjects.  
Soybean meal resisted dropping but, recent rising is rapidly, supply is sufficient as well limit the upward scope; since this soybean meal rebounding is in cost transmission, weakens US market recently will end the continuously rally trend of soybean meal price; as for spots side, market performance is firm, huge amounts of non-executing contract in north areas, no hammer on oil plant inventories, aspiration of insisting price is strong, the spot price raises easily and hard to fall. Persistence of rebounding requires the performance in low point from US soybean. We recommend gradually long in slight positions as for operation.
 
 
PP
Last week PP futures continue dropping. In upstream, FOB Korea propylene edged up, average price was $765.5/ton. As for device side, the operation ratio was about 79.4%, lower than last week. On spots side, PP market price edged down after stagnation in last week. Merchants stay in cautious and shipped in breaking even. Both crude oil futures and spots price dropped, market in the bearish trend and quotation was loosen.
Take example as wires, mainstream quotation from North, East and South China is RMB 8050-8150/ton, RMB 8150-8350/ton, RMB 8200-8300/ton, respectively.
As for operation, current moving average system permutes in short, MACD exposure extends in downturn, as the downward tendency. Recent fundamental and price side is both in weak trend. We recommend continue shortening and prior short positions can be further held.

 
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