Daily Report 290716

PP
Yesterday PP futures opened low and raise; opened at 7999 and closed at 8328. Trading volume increased 284000 lots to 741000 lots. Holding volume decreased 23576 lots to 711000 lots. Actual side, yesterday domestic PP market end drop and kept stable. Partial price intensively highly quoted of RMB 50-100/ton. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7750-7850/ton, RMB8050-8100/ton and RMB8050-8150/ton, respectively. Currently moving average system twines. MACD green column shortened. Downward motion is not enough. We recommend for observation.
 
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
Thursday copper market slightly rallied. LME inventory decreased 5700 tons; physical discount slightly enlarged to $11.75. From the newest copper mine output news, 13 mines output increased 10.2% year-on-year, so copper output this year is releasing. Zambia first-half output increased 9.6% year-on-year to 373000 tons. Global copper output is mainly from Zambia and Peru. Technically, copper price rallied; we pay attention to resistance near 60 weeks average $ 4930.
                                                                          Dong LV (Investment Certificate NO. TZ008452)