Daily Report 150716 2016-07-15
Copper
Thursday copper price fluctuated near the high positon, and closed with little rise. From the VIX data, risk avoiding mindset has declined to the recent low point of 12.82. Back to copper market, LME spot discount narrowed $0.75 to $19. Yesterday inventory increased 1875 tons to 235000 tons. Technically, we consider copper price upward tendency still exits. Since price climbed quickly recently, it exits adjustment requirement short-term.
 

 
Soybean
Domestically, DCE soybean fluctuated following overseas section. Spot goods side, observation atmosphere is strong. Today storage soybean begins to sell. Now the auction price is not sure. Now market rumor is much; news is floor price is around RMB 3000/ton. The total amount is predicted to be 4.8 million, which will be sold before October. All the traders and enterprises claim that the quality of 2010 and 2012 soybean is bad, and 2013 is better. So they may observe at the earlier time of the auction. Soybean meal side, spot price climbed RMB 20-30/ton, and costal oil plant quotation was around RMB 3360-3450/ton. Now South China raining makes some influence on breeding industry. Several places appear the phenomenon of soybean meal sales and inventory backlog. Now market differentiation is serious, and market is lack of need. Middle-term can go long at low point.
 

 
Stock Index
Yesterday stock index slightly fluctuated; rapidly rallied after decline. Recent days, securities, bans, military industry, aviation section launched. De-capacity of steel is at force. This rally is under the background of insensitive of macro data decrease and supply-side reform settled for main line. Since the beginning of May authorities claimed supply-side reform; President Xi raised ‘rejuvenate nation through science and technology’, and the State Council surveyed private investment. Chairman Xi points out in July that we need to stay firm in the reform of state-owned enterprises as well as supply-side, rendering the market reassured. The reform of state-owned enterprises and the resolve of over-capacity will be carried forward. Meanwhile, various pilot project s of central enterprises are fully underway. The reform will be better not worse. Moreover, the market holds some expectations over the interim statements.
                                                      Dong LV (Investment Certificate NO. TZ008452)