Daily Report 050816

Soybean
Domestically, during the progress of price decreasing, oil against meal ratio increase is the high possibility event. Northeast China soybean price continued price drop. West Heilongjiang district price drop is obvious. The filter goods price dropped to RMB 3800-3900/ton. Provincial grain traders are willing to sell actuals. Sales district need is weak. Traders consider 2015 soybean has no advantage in quality and price. Soybean meal side, actuals are stable and weak. Several districts price continue drop. Coastal oil plant quotation maintains RMB 3020-3060/ton. Domestic import soybean supply is abundant. Breeding industry recovery slowed down. Market terminals are releasing former inventory. Market sales progress is slow, and observation attitude is obvious. As for operation, we consider forward soybean tendency will continue fluctuation and downward. Recommend short with low volume or arbitrage with buying oil and selling soybean meal.
 
Copper
Thursday copper market dropped with bolster, and domestically opened low and increased. Since economy performance is not good, copper market moods have been influenced. Long position close is obvious. Thursday LME physical discount enlarged $0.5 to discount $16. Inventory turns to increase 1950 tons to 209000 tons. Supply side, Japan Home Credit claims that its Caserones mine was suspended as a result of snow, and operating schedule slowed. This year second season filtered copper output was 17000 tons. The expectation of 137000 tons is hard to achieve. Technically, copper price rolled back and met bolster, and the possibility of rally exists. We wait for new possibility to short.
 
 
Dong LV (Investment Certificate NO. TZ008452)