Daily Report 200616 2016-06-20
Soybean
Domestically, DCE soybean rallied with overseas section. Spot goods side, North China soybean price is stable. Northeast China net purchase price is 3956 yuan / ton; Because of supply and demand have shown signs of fatigue, the market continued stalemate, under the dual pressures of acquisitions and shipping in some areas, grain merchants stopped harvest and observed, reducing the level of activity of the market. Overall since the auction is still pending, the spot market is facing the pressure of both the demand side and the news side; short-term price is not easy to increase. Soybean meal side, last week the domestic soybean meal spot price decreased 70-80 yuan / ton. Pig breeding to pick up, "pig cycle" expected to heat up to support domestic soybean meal prices. US weather is good, and US soybean growing is good. Suppress the short-term rising trend of the market. Short-term adjustment of the overseas section influenced the material further downstream procurement rhythm, sustained attention to the US soybean callback and area report at the end of month. As for operation, we recommend hold middle term long position.
 


PP
Last week PP futures went strong out of fluctuation. From upstream side, up to Friday night, FOB Korea propylene average price was $ 703.5/ton. From spot side, last week domestic market price overall raised, petrochemical bolster the price and, market supply was tight which exacerbated upward tendency. Market contradicted with the rally trend and, buying volume didn’t increase.
Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7000-7100/ton, RMB7050-7200/ton and RMB7100-7150/ton, respectively.
As for operation, current moving average system is gradually forming long position arrangement, MACD red column extends as bullish trend but, recent tendency is closing to recent high point, the upward trend might get resistance.
 


Copper
Last week copper market adjusted at low w, and lacked the power of rallying. Last week, the Fed left interest rates unchanged and the British pro-EU opposition members suffered gunshot make macroscopic lack focus. But Friday, St. Louis Fed President Bullard rate hike attitude change, showing Fed only need interest hike once before 2018. Reverse poll data occurred after the British pro-EU, Mr Jo Cox was killed on Thursday, leaving support for Europe slightly ahead, the dollar has been under pressure. British retreat Europe referendum remains the biggest uncertainty for copper market. Last week spot goods discount decreased from $16.5 to $6.5, and expanded to $10.5 at Friday. Domestic spot goods premium also increased. Last week three exchanges storage decreased 33000 tons to 424000 tons. The reduction is meanly from Shanghai Futures Exchange and LME, which is totally 30000 tons. From Shanghai Metals Market, last week copper mine processing charges increased 5 cents. Technically, we focus on average 20 resistance, which is $4600 of LME and 35500 domestically.
 


Nature Rubber
Last Friday Shanghai rubber rallied, and US spot market price increased: domestic spots price is 1240-1250(+50); domestic cargo price is1240-1250(+50); US RSS spots price is 1450-1480(+60); US RSS cargo price is1440-1520(+60); Singapore cargo price is 1290-1310(+60); Thai cargo price1280-1300(+20); mixed rubber price is9800-9900 (+200).
 

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