Daily Report 080716 2016-07-08
Thursday copper price continued rolled back. LME closed with drop of 1.71%. LME spot goods discount continued narrow $4.5 to discount $14. Inventory end two days continuous increase. Yesterday turned to decrease 1825 tons to 221000 tons. Supply side, Chile national copper committee predicted Chile copper output of this year decreased 0.5% year-on-year to 5740000 tons. This is a little declined than expected 5770000 tons at end of April. Technically, copper price is under adjustment. Bolster point is $4650.

Domestically, DCE soybean night section was fluctuated; oil against meal ratio hover at low point. Spot goods side, domestic soybean price is stable and increased. Main increasing areas are focus on Haerbin and Suihua. Today Wuchang and Bayan filtered goods price increased to RMB 4200/ton. Market purchase and sales are near the end. Production area supply gap is big. Grain dealer purchase is not of scale. Short-term northeast soybean continued boosted by tight supply and demand. The price might slightly increase. Soybean meal side, spot goods price is weak and stable. Oil plant quotation is around RMB 3350-3450/ton. South China flood is serious, and caused some influence on breeding industry of partial provinces. The following possible epidemic and destroyed fish pond will influence the need for soybean meal, which caused short-term need decreased. We consider that recent weather influence is short-period, and market emotion reflection is larger than the real influence. As for operation, avoid largely fluctuation recently, and middle-term can go long at low point.

Yesterday PP futures opened high and went low; opened at 8420 and closed at 8298. Trading volume decreased 304000 lots to 823000 lots. Holding volume decreased 38166 lots to774000 lots. Spot goods side, yesterday domestic PP market is stable and loose. Price slightly decreased RMB50/ton. Although futures opened high and most Sinopec factory price is stable, bolster to spot price is strong. But traders sell at the recent price. 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 8100-8250/ton, RMB8300-8400/ton and RMB8250-8400/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)