Daily Report 270716 2016-07-27
Stock Index
Yesterday all sections closed with increase. The section of food and beverage leaded the increase. News side, meeting of the Political Bureau emphasize fiscal policy and stable monetary policy. Deepen the state-owned enterprises’ reform, and resist asset bubble. We consider, the second-half year accurate fiscal policy will continue powerful, and convoy the supply-side reform. Resisting asset fund doesn’t suppress security price. From our observation, since Briexit, stock index is not sensitive with macro event of domestic and overseas. 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. It is recommended to make some tentative purchase when the price seems attractive.

Domestically, DCE soybean species tendency is better than overseas section. Oil against meal ratio rolled back recent two days. Northeast China soybean price continued drop. Now most districts main purchasing price is about RMB 4000/ton. Now traders’ mindset is pessimistic. Market can’t digest the stale grain sales of 600000 tons per week. Domestic soybean market weak situation appears. Inventory soybean continued sales stress on market supply. Soybean meal side, actuals quotations are mostly stable and slightly dropped. Individual districts and oil plants stopped quotation, and only quote basis. Fluctuation range is between 10 and 30. Trading main body is stable and tending weak. US weather is benefit to crop grow, weather buying is weak. Funds sales stress of six continuous weeks keeps the market under adjustment. As for operation, with the continuation of US weather, later rally motion is weaker and weaker. Don’t recommend long positon.

Tuesday copper market rallied after rolling back with bolster. Fundamental side, Monday LME inventory deceased 7625 tons to 214000 tons. The spot discount enlarged $0.5 to discount $12.75. Supply side, Free Port second season copper output increased 15.97% year-on-year, mainly because Cerro Verde output climbed. Technically, LME copper price stress on 5 days average $4930, which is RMB 38200 domestically. If 5 days average line is effective, copper price still has the possibility of rolling back.
                                                                Dong LV (Investment Certificate NO. TZ008452)