Daily Report 110815 2015-08-11
Copper
Monday copper price rallied. In macro side, China State Council has approved the state-owned enterprise reforming scheme and, statistics reveals that China Securities Finance has joint rescuing army by virtue of five successively established national team funds by fund companies with total RMB 200 billion. Yesterday China stock market finally out of prior sluggish, market confidence enhances. The information as well bolsters the copper price. At the moment, performance of US dollar is still the focus in macro side. On fundamental side, LME spots discount $9.58, domestic spots discount RMB 70-20; main reason is import copper impacts on the market which makes copper spots continuous discounting and, as delivery is near, spread in every months is huge, which also makes holding traders urgent to cash-out. As for supply side, main copper export port in North Chile still closes on Monday under the impact of rainstorm. Chile Codelco restarts the North Chile suspended mining operation.  Chuquicamata Mine with 340,000 tons annual output copper in last year has restarted operation after forced to shut down on Sunday. Salvador Mine under Chile Codelco with 40,000 tons annual output still shuts down owing to striking, the mining operation has stopped for 20 days.  Partial production line from Ministro Hales with 140,000 tons annual output still closes. Technically, LME copper resistance is $5340, domestic is RMB 39500-40000. Only raising over above price, copper price will come into the rally trend.  
 
 
Soybean
DCE night session price continues rally following overseas. The raising momentum from Soybean No.1 contract is from recent soaring spots, domestic soybean raises under boosting from stagnated import soybean distribution. We consider the inspection of import soybean flow direction is base on the persistence in late period, current traders in production areas are reluctant to sell out which causes irrational raising of spots; we predict short tendency of soybean No.1 contract will stronger than the soybean sector but, upward scope from present level will be limited.
Yesterday most soybean spots raised RMB 40-60, quotation at RMB 2750-2800/ton, mainly boosted from overseas market rally trend and cost of import increase. Current soybean meal demand is thin, market supply is sufficient and lacks of demand; focus on the impact to soybean sector from Wednesday report. We recommend holding slight positions or observing as for operation.
 

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