Daily Report 220716 2016-07-22
Nature Rubber  
Recently domestic commodity market recent month contracts are strong. Shanghai rubber recent month and forward month closed at 11575 and 13245 respectively. Till spot goods trading period: domestic spots price is 1330-1340(+40); domestic cargo price is 1330-1340(+40); US RSS spots price is 1610-1640(+30); US RSS cargo price is 1620-1660(+40); Singapore cargo price is 1340-1350(+30); Thai cargo price 1350-1380(+20); mixed rubber price is 10800-10900(+100). News side, China Customs Office newly released data shows that China June 2016 natural rubber (include rubber latex) import volume is 152338 tons, and decreased 21% month-on-month; decreased 2% year-on-year. From January to June import volume was 1,162,429 tons, and increased 3% year-on-year. Overall, Shanghai rubber 09 contracts will enter the last week before delivery. Long-short game is more serious. Operating focuses on short-term trading.

Domestically, DCE soybean continued weak tendency. One side US section continued rolled back; another side national inventory soybean auction stress on domestic soybean. Northeast China soybean continued dropping, and Heilongjiang main purchasing price was RMB 4000-4100/ton. Purchasing volume decreased when price went down. Inventory soybean auction is strong bearish news. The purchasing enthusiasm of traders decreased. But as spot inventory of all places are rare, and the quality of oil beans is bad, the expected spot goods price decline is limited. Soybean meal side, spot goods continued decline tendency. Soybean meal side, spot goods continued dropping, and several places dropped RMB 30-60/ton, which is mainly influenced by domestic inventory overstock. Domestic port soybean inventory continued high position. Oil plant operating rate increased. Domestic soybean meal spot goods supply is loose. Oil plant sales stress expanded. As for operation, with the continuation of US weather, later rally motion is weaker and weaker. Pay attention to US bolster and turn attitude to cautious.

Stock Index
Stock index rushed high, rolled back and slightly fluctuated and former high position. New side, the policy of military and civilian integration released, and policy bonus comes. Supply-side reform settled for main line. Since the beginning of May authorities claimed supply-side reform; 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. Meanwhile, various pilot project s of central enterprises are fully underway. Policies and listing companies state-owned enterprise reform is frequently. Since private investment declined, economy downward pressure still exits. Overall pressure exits; with the main line of reform, tendency might be rally with fluctuation.
                                                                           Dong LV (Investment Certificate NO. TZ008452)