Daily Report 130716 2016-07-13
Tuesday copper price largely increased. LME increase range was up to 3%, and domestic copper price increased 2.5%. LME spot discount narrowed $1 to $19. Inventory largely increased 12000 tons to 235000 tons. This is another largely inventory increase after last Tuesday and Wednesday. From inventory structure, LME inventory increase is mainly from Asian warehouse. Yesterday LME Asian warehouse inventory increased 117000 tons. Technically, copper price was strong yesterday, and focus on price around $4930 of short-term.

Domestically, DCE soybean rallied following overseas section; oil against meal ratio rolled back the two recent days. Spot goods side, recent days domestic soybean spot prices are stable. Storage soybean auction settled down; the first auction will start at 15 Jul, and domestic amount is 300000 tons. Now the exact auction mount and floor price is not sure. Producing area surplus grain is under shortage period, which restricts the purchase and sales of spot market. In addition, south sales district is under off-season, which restricts the increase tendency of soybean price. Pay attention to Friday auction. Soybean meal side, spot price is stable. Costal oil plant quotation is around RMB 3320-3380/ton. South China flood influence on fodder decreases, and market tend to be stable, and middle-term can go long at low point.

Yesterday PP futures opened low and then went higher; opened at 8080 and closed at 8300. Trading volume increased 150000 lots to 700000 lots. Holding volume increased 26008 lots to793000 lots. Spot goods side, domestic PP market continued decrease tendency, and most prices decreased RMB 50/ton. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7900-8000/ton, RMB8100-8200/ton and RMB8100-8200/ton, respectively. As for operation, current moving average system arranges in long. MACD red column shorten. Upward motion is not enough. Market tendency is not sure, so we recommend observe.
                                                                Dong LV (Investment Certificate NO. TZ008452)