Daily Report 300616 2016-06-30
Domestically, DCE soybean fluctuated narrowly. Oil against meal ratio is still at low point. 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 problem of surplus grain shortage and tense supply provides strong support to trader’s attitude. Soybean meal side, spot goods quotation is stable. Some districts are mixed with up and down. Partial oil plant price declined 20-30 yuan/ton. Costal oil plant quotation is around 3420-3470 yuan/ton. Now soybean meal storage has no pressure and part oil plant is in a shortage situation. Pay attention to the US soybean callback and area report at the end of month. As for operation: observe before report release.

Wednesday copper market bolstered at average 5; copper price slightly increased. Global markets all line increased; US dollars and gold price rolled back, which indicated market worry about Brexit had further relieved. From latest news, EU has prepared for UK to sign the Brexit paper. UK also presents that the new premier can negotiate with EU before Article 5 started. Yesterday IMF increased Germany GDP prediction. Back to copper market, LME spot goods discount decreased $1 to discount $7.75; storage continuously increased 1250 tons to 194000 tons. Nowadays copper price increased; price spread of copper scrap and refined copper increased, which raised the demand of copper scrap. Recently copper price is back to average 5; whether this price will be broken decides the upward space is open or not.

Yesterday PP futures opened high and dropped with fluctuation; opened at 8080 and closed at 7929. Trading volume increased 106000 lots to 1010000 lots. Holding volume decreased 37056 lots to726000 lots. Spot goods side, yesterday domestic PP market continued increase, and increasing range narrowed to RMB100/ton. Although East, South and Northeast etc. of Petro China continued increase to bolster the market price, but this dropped futures market worried investors. Traders’ sell willing is increased. Downward factories conflicting emotion is high, and investing and trading is low. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7600-7700/ton, RMB7850-7950/ton and RMB7700-7800/ton, respectively. As for operation, current moving average system arranges in long. MACD red column lengthen. Today’s price is weak, and upward motion is not strong. Recently is predicted continuous fluctuation, and we recommend observation.
                                                Dong LV (Investment Certificate NO. TZ008452)