Daily Report 280616 2016-06-28
Soybean
Domestically, DCE night section slightly rallied. Oil against meal ratio is still at low-point sideways. Spot goods side, Northeast China soybean price is strongly upward. North, middle and west main producing area price normally increased. Filtered grain purchasing price is between RMB 4060 to RMB 4120. The market is still bolstered by strong supply and demand side. Storage of supply decreased purchasing. From soybean side, spot goods price is stable. Costal oil plant quotation is around RMB 3360-3400/ton. Pay attention to the US soybean callback and area report at the end of month. As for operation: observe before report release.
 


Copper
Monday domestic and overseas copper market trading was bleak. Copper price fluctuated within last Friday’s price range. From the macroscopic view, the fluctuation caused by Brexit still exists. From the latest news, the second referendum is not possible, and market predicts UK economics of early next year will have a recession and will decrease interest rate at June. Now governments and central banks are still cautious about UK referendum, and positively prepared for that. From copper market, LME spot goods discount increased 3.5 dollars to 11.5 dollars; storage continued decrease 675 tons to 192000 tons. There are rumors that 150000-200000 tons copper will be transferred to LME storage. But the possibility is declining recently. We consider copper price has already reflected the surplus fundamental side and weak economy. The downward space is limited, short-term copper price is near the special resistance point, which is $4800 of LME and RMB36800 domestically. Whether this price will be broken decides the upward space is open or not.
 


Nature Rubber
Yesterday commodity market rallied; rubber US spot goods market price increased: domestic spots price is 1250-1260(+20); domestic cargo price is1270-1290(+30); US RSS spots price is 1480-1500(+20); US RSS cargo price is1530-1540(+30); Singapore cargo price is1300-1330(+30); Thai cargo price1330-1350(+30); mixed rubber price is10100-10200(+300). From news side, SHFE storage slightly increased 7984 tons to 328157 tons, in which futures storage decreased 2300 tons to 299530 tons. Overall, Brexit affects short-term global financial market risk reference, and periphery risk capital is under stress; the yuan against the dollar is devaluated. Shanghai rubber bottom fishing capital is concentrated, and the trading is mainly short-term.
 


PP
Yesterday PP futures opened high and reached daily limit; opened at 7466 and closed at 7784. Trading volume increased 5004 lots to 822000 lots. Holding volume increased 30174 lots to780000 lots. Spot goods side, yesterday domestic PP market price continued increase. Part of the petrochemical factory price hike and the support on cost of the market has been enhanced. PP futures market continued strong and bolstered the market attitude. Traders quoted with a slightly higher price to observe market’s reflection. Downstream factory continues purchase with needs; market quotation is more and trading atmosphere is good. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7300-7450/ton, RMB7500-7650/ton and RMB7400-7450/ton, respectively. As for operation, current moving average system arranges in long. MACD red column lengthen, which is strong tendency. But recent side trend is a little deviated from fundamental side, and the risk increased. Be cautious for chasing rising.
                                                                          Dong LV (Investment Certificate NO. TZ008452)