Daily Report 240516 2016-05-24
Domestically, DCE soybean night section went weak all line; soybean meal rolled back firstly, and oil against meal ratio ended drop. From spot goods side, North China soybean price of several places increased, around Haerbin of Hei Longjiang, part of Suihua and Jiamusi filtered goods purchase price increased RMB 40-60/ton. The price is increasing but not volume, because farmers are busy sawing. Market is lack of soybean supply, and Northeast China grain surplus is less. Delay of soybean storage auction also stimulated the spot market. From soybean side, spot market price is stable of most places, and fundamental side is good. Bottom bolster exists, but increase motion is not enough. Pig breeding stock is during the stage of slowly recovery, and the demand has not increased yet. The reason of recovery this term is significant strength difference of oil and meal and capital reason. Overseas section is fluctuated; domestic breeding recovery situation is good. This offers the opportunity of continuous rebound. As the rebound range is bid, the risk of roll back is still high. As for operation, soybean meal long position should reduce or close off, and arbitrage between oil and meal observe temperately.

Monday copper market is under adjustment; closed slightly decreased. Data from the Customs Bureau shows that April refined copper import increased 3.65% to 342000 tons, and increase speed is significantly slowed down compared with February and March. The slowdown of import increase speed reflects weak copper demand domestically. From history data, with the end of April consumption season, refined copper import will recovery. This weak consumption season causes our concern for later demand. In addition, interest hike is also a factor can’t be ignored. Back to copper market, LME spot goods premium turns to premium $5 to $15.5; storage decreased 725 tons to 155000 tons. Domestic spot goods premium increase 5 yuan to premium 40 to premium 80. Market trading rallied after dropping, but because low price goods supply is less, trading is limited. Overall, copper market is still weak, and the operation is will short; target profit is at average 10.

Nature Rubber
Yesterday Shanghai rubber continued dropping with increasing volume and reached close limit. US spot market quotation dropped sharply: domestic spots price is1210-1220(-50); domestic cargo price is 1200-1220(-60); US RSS spots price is 1450-1460(-50); US RSS cargo price is 1520-1550(-50); mixed rubber price is 9400-9500 (-500). Overall, rubber seasonal pressure appears; weaken macro atmosphere caused Shanghai rubber price in a rush, and the weak tendency maintains in the later market.

Yesterday PP futures opened low and went downward; opened at 6432 and closed at 6368. Trading volume increased 289000 to 0.795 million lots, and holding increased 10562 to 637000 lots. From spot goods side, yesterday domestic PP price slightly roll back with stable. Part of Sinopec factory price increased, bolster to the market cost is limited. PP futures price is at a low price, which strikes the market attitude. Traders sell with needs, and most traders surrender with profit to increase trading volume. Downstream enterprises are under observation, and receipt willingness is low; market trade atmosphere is low. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 6850-6950/ton, RMB6650-6800/ton and RMB6750-6950/ton, respectively. Current moving average system still arranged in short, MACD green column lengthened, which is downward trend. A weak tendency is expected recently.
                                                                          Dong LV (Investment Certificate NO. TZ008452)