Daily Report 280815 2015-08-28
Soybean No.1 contract continued volatile in horizontal, oil meal gradually stabilizing. Soybean spots in northeast area was weak of stabilize, market was in observing from upcoming new grain. It was estimated that spots would continue stable platform in short period, unilateral tendency market was hard to form in futures market.
Soybean meal spots were stabilized, spots in north China, Shandong areas were tightened, overseas market weaken recently had no huge influence on above regions. In addition, inventories from oil plants in south China and east China were huge, hammer on supply side was plainly; regional division was critical, short period tendency of soybean would be awkward. We recommend keeping rally in weaken mindset.
Yesterday PP futures opened up high and went higher, opened at 7400 and ended at 7467; trading volume increased 3038 lots to 232,000 lots. In upstream side, FOB Korea propylene decreased $25 and average price was $685.5/ton. On spots side, yesterday domestic PP market price was loose in stabilize. Partial plants in Petro China north China, east China reduced EXW which further weakening bolster to market cost. Latter market was bearish from most merchants and, positive shipment strategy continued. On demand side, initiative receiving demand from enterprises in downstream had no plainly improvement, trading was on rigid demand.
For instance of wires, main quoted prices of north, east and south markets are RMB 7700-7800/ton, RMB 7950-8100/ton and RMB 7800-8000/ton, respectively.
As for operation side, moving average system ranged in short; MACD green column shorten as rally trend; yesterday crude oil soared, intraday bull trend may appeared. We recommend closing position in low point and stop-profit.
                                                          Dong LV (Investment Certificate NO. TZ008452)