Daily Report 010716 2016-07-01
Yesterday Shanghai rubber increased again; concerned 91 price range broke former years. US dollar spot goods price keeps stable. But mixed rubber price increased; till spot goods trading period: domestic spots price is 1260-1270(+10); domestic cargo price is1280-1290(+10); US RSS spots price is 1490-1500(+10); US RSS cargo price is1540-1560(+20); Singapore cargo price is1310-1330(+10); Thai cargo price1340-1350(+10); mixed rubber price is10200-10300(+100). News side, offshore yuan against dollar dived yesterday. Central bank claimed that several media continuously released distorted message about RMB rage, which misunderstood the public opinion. Overnight overseas side, Europe and America stocks soared; US oil dropped more than 3%. Gold created the best first-half year performance of the nearly 36 years. Overall, now several species of commodity market broke long term resistance, and traditional industry capital is shocked. The market is popular with discussion about rich fund and lack of core capital. Fundamental surface is coincident with seasonal regulation. Technically, pay attention to upward tendency line bolster, and 11500 line resistance.

Thursday copper market fluctuated at high point. The governor of Bank of England indicates may decrease interest rate to boost economy. Brexit supporter Boris Johnson declared abandon the prime minister election. After market reflects the loss of Brexit, the market is waiting for clear of influence of Brexit. US dollar is facing breakthrough. Back to copper market, LME spot goods discount narrowed $2.75 to discount $5; storage decreased 2675 tons to 192000 tons. Supply side, copper output of the first five weeks decreased 5.1% month-on-month to 2.305 million tons. Supply stress released when Chile copper output declined. Mexico April copper output increased 5.1% month-on-month to 41000 tons. Jabal Sayid owned by Barrick and Saudi Arabian Mining Company began commercial production on June 1st, and filtered copper output is predicted to be 45000 tons. June copper price closed above 5 month average line, which encouraged people. But copper price may fluctuated at center positon. We wait for market clear.

Yesterday PP futures continued fluctuation; opened at 7930 and closed at 8052. Trading volume increased 2954 lots to 1013000 lots. Holding volume increased 7912 lots to734000 lots. Spot goods side, yesterday domestic PP market continued increase. Partial Sinopec districts continued increase, and bolster to market increased. PP futures market continued strong and bolstered the market attitude. Traders’ sell willing is increased. Downstream plant willingness to accept the goods is limited, and observation atmosphere is severe. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7700-7800/ton, RMB8050-8100/ton and RMB7900-8050/ton, respectively. As for operation, current moving average system changes; MACD spread upward; but recent price is near the highest point. Risk increased, and we recommend observation; don’t recommend chasing rising price.
                                                             Dong LV (Investment Certificate NO. TZ008452)