Daily Report 280716

Nature Rubber
From overall commodity market, and mature species tendency is consistent. Under the circumstances of stable fundamental side, the power of main speculating capital is still the change of macro surface. Domestic commodity market is general strong in near month. Most contracts will enter the last week before delivery. Long-short game is more serious. The former tendency is difficult to realize. From former years’ rubber market situation, near month holding volume is high. The coming 150 lots limit will accelerate over-the-counter non-firm offer leave. We predict the tendency before September delivery will be a fluctuation with lower high point. With end of delivery, long and short will layout contract 1701. Don’t exclude the long position speculation after delivery month.
 
Soybean
Domestically, DCE soybean vibrated. Oil against meal ratio rolled back recent two days. Northeast China soybean price was stable. Now most districts main purchasing price is about RMB 4000/ton. 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, 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.
 
Copper
Wednesday copper market dropped. LME dropped 1.69%. Monday LME inventory turns to increased 700 tons to 214000 tons. Physical discount narrowed $ 1.75 to discount $11. Supply side, Peru June copper output increased 42.2% to 207000 tons year-on-year. Last half-year copper output increased 51.5% to 1120000 tons year-on-year. Output increase is mainly from Cerro Verde, Antamina, Southern Mining and Las Bambas. Technically, copper market is weak. If 5 days average line is effective, copper price still has the possibility of rolling back.
                                                                       Dong LV (Investment Certificate NO. TZ008452)