Daily Report 140716 2016-07-14
Wednesday copper price continued climb. LME reached $5032, and rolled back partly. LME spot discount enlarged $0.75 to $19.75. Yesterday inventory turned to decline 1700 tons to 233000 tons. From trading data released yesterday, China wrot copper and imported copper was 420000 tons; increased 20.34% year-on-year. From analysis, June import copper data dip for the third continuous month. This was related to close import window most of the time. Supply side, Capstone copper output increased 33% year-on-year to 28000 tons for the second season, because Pinto Valley throughput rate reached new report for the third continuous season. This company maintains 2016 copper output expectation to be 108000 tons. Technically, we consider copper price upward tendency still exits. Since price climbed quickly recently, it exits adjustment requirement short-term.

Domestically, DCE soybean rallied following overseas section; oil against meal ratio continued rolling back. Spot goods side, Northeast China soybean price continued upward tendency. Heilongjiang north, middle and east purchasing price increased to RMB 4200/ton. Purchasing price is lack at all districts, and trades are difficult to purchase when facing basic lack of grain. Purchase and sales are weak. Enterprises and traders are attractive with inventory soybean, and the purchasing enthusiasm for spot goods declined. This is the main factor that will retrain spot price increase. Short-term price will maintain adjustment tendency. Soybean meal side, spot price climbed RMB 40-60/ton, and costal oil plant quotation was around RMB 3360-3430/ton. South China flood influence on fodder decreases, and middle-term can go long at low point.

Yesterday PP futures opened high and dip; opened at 8370 and closed at 8141. Trading volume increased 75018 lots to 775000 lots. Holding volume decreased 26572 lots to766000 lots. Spot goods side, yesterday domestic PP market increased around RMB 50/ton. Several Sinopec factory prices climbed, and boost goods cost increase. Futures price is high; boost the market mindset. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7900-8000/ton, RMB8100-8350/ton and RMB8300-8350/ton, respectively. Recently average system has the signal of changing, and MACD formed will form dead crossing. Upward motion is not enough. Observe position near 8000.
                                                              Dong LV (Investment Certificate NO. TZ008452)