Daily Report 210616 2016-06-21
Soybean
Domestically, DCE soybean night section mixed with up and down; Oil against meal ratio was strong; concentrate on its constancy. Northeast China soybean spot price is stable and relatively strong. Some areas purchase price increased RMB 20-40/ton. Northeast China net purchase price is 3900-4000 yuan / ton. With the decrease of surplus grain, most merchant stop purchase and mainly sell storage. Several markets are under the condition of price with no market. This condition limited the space of spot goods price went up. Soybean meal side, spot goods price increased of several places, which price is between RMB 3380-3420/ton. Domestic breed demand bolstered soybean meal market. US weather is good, and US soybean growing is excellent. Suppress the short-term rising trend of the market. Domestic downstream purchase demand is good, and stronger the mindset from oil plants to bolster price. Short term domestic section is mainly avoiding drop. Pay attention to the US soybean callback and area report at the end of month. As for operation, we recommend hold middle term long position.


 
Copper
Monday copper price continued fluctuated at low position. LME closed with increasing 1.9%, and domestic copper price closed with increasing more than 300 yuan. The latest results of two polls showed that more than half of the respondents support the British stay in Europe, making the market risk appetite has improved; VIX index dropped to 18.37. European stocks rose; crude oil, metals and other commodities rebounded. Back to copper market, LME spot goods discount increased 0.25 dollars to discount 10.75 dollars. Storage continued dropped 1900 tons to 194000 tons. According to ICSG data, March the world's shortage of refined copper is 40,000 tons. The World Bureau of Metal Statistics earlier released March global refined copper supply shortage is 45,000 tons, basically the same. The recent performance of global economy is bad, and US interest hike expectation is cooled down, which makes the market pressure slow in the short term. The market is still concerned about Thursday's British retreat Europe referendum. Technically, copper price still fluctuated at low point. Technically, we focus on $4600 of LME and RMB35500 domestically.
 

 
PP
Last day PP futures opened high and increased with fluctuation; opened at 7138, and closed at 7207. Trading volume decreased 110000 to 465000 tons. Trading volume increased 17240 to 665000 tons. Spot goods side, yesterday domestic PP market price slightly increased. Part of producer price of petrochemical increased, and bolster for the market costs strengthened. Traders sell following the increasing price. Downstream enterprises reflect flat, and purchase is cautious; dealing is after demand. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7050-7100/ton, RMB7200-7300/ton and RMB7100-7200/ton, respectively. As for operation, current moving average system arranges in long. MACD red column lengthen, which is strong tendency. But the position is near the high point of former. Tendency may fluctuate and be cautious.
                                                                        Dong LV (Investment Certificate NO. TZ008452)