Daily Report 290616 2016-06-29
Domestically, DCE night section fluctuated with up and down. Strong soybean meal makes oil against meal positon is still low. Spot goods side, Northeast China purchasing average price increased stable after broke 4000 line. The problem of surplus grain shortage and tense supply provides strong support to trader’s attitude. Soybean meal side, driven by largely increase of market, spot goods increased RMB 60-80/ton. Costal oil plant quotation is around RMB 3420-3470/ton. Now soybean meal storage has no pressure and part oil plant is in a shortage situation. Middle and short term basis sales is hot; oil plants have large basis contracts to be a support. Pay attention to the US soybean callback and area report at the end of month. As for operation: observe before report release.

Tuesday copper market was strong, and LME increased 2.51%. After several days’ digestion, the panic of Brexit disappeared. VIX index is back to 18.75. European and America stock markets all line increased yesterday. US dollar index and gold price was still within the range of reflection after referendum result is clear, which bolstered the copper price. From copper market, LME spot goods discount narrowed $2.75 to discount $8.75; storage increased 1250 tons to 193000 tons. LME storage is still at the historical low point. But LME spot goods are still under the situation of discount. The feature of off-season is obvious. According to LME funds positioning data, till last Friday, LME funds long positon largely increased 19336 lots to 23499 lots, which caused last week copper price increase. Technically, LME copper price is at middle pint $4800 of the low range between $4500-5100, and near the five month average of $4815. Whether this price will be broken decides the upward space is open or not.

Yesterday PP futures opened high and increased; opened at 7800 and closed at 8067. Trading volume increased 5004 lots to 822000 lots. Holding volume increased 30174 lots to780000 lots. Spot goods side, yesterday domestic PP market price increased. 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 7400-7500/ton, RMB7800-7950/ton and RMB7550-7600/ton, respectively. As for operation, current moving average system arranges in long. MACD red column lengthen, which is strong tendency.
                                                             Dong LV (Investment Certificate NO. TZ008452)