Daily Report 100816

Soybean
Domestically, soybean meal followed overseas section tendency. Oil against meal ratio fluctuated around 2.1:1. North district soybean price continued bearish adjustment. Actuals price keeps stable. Old soybean price decreased from RMB 3840/ton to RMB 3800/ton. The quality of 2013 soybean is different. Sine now national inventory shows the tendency of weekly continuously auction, domestic actuals supply gap is filled. Following sink overseas section, inventory auction doesn’t have advantage. Soybean meal side, actuals quotation is mixed with up and down, and fluctuation range is between RMB 20-50/ton. As for operation, we consider forward soybean tendency will continue fluctuation. Recommend short with low volume or arbitrage with buying oil and selling soybean meal.
 
Copper
Tuesday copper market continued slightly sinking. Domestic copper opened low and rose with bolster. Tuesday LME physical discount narrowed $0.75 to discount $9.75. Inventory increased 325 tons to 205000 tons. Supply side, Free Port got the letter of recommendation of export license from Indonesia Ministry of Mines. According to process, after Ministry of Mines releases recommendation letter, trading can release export license. Then Free Port can recover export. Its original export license was due this Monday. Zambia Minister of Mine Ministry claimed that after Kalumbila increased output, the first half year copper output increased 8.2% year-on-year to 368371 tons. Zambia predicts that after Mopani finishes debug and the deep exploitation begins, yearly output is predicted to be 750000 tons. Technically, copper price is still bearish. Resistance is at average 5. Recommend short and control risk.
 
 
Dong LV (Investment Certificate NO. TZ008452)