Daily Report 170816

Soybean
Domestically, DCE soybean night section fluctuated of both sides. Oil strong and meal weak situation continued. Oil against meal ratio is during fluctuation and upward situation. Northeast district soybean price is stable. Old grain main price is RMB 3640-3800/ton. RMB 40-60/ton less than last week, and encumbered by last week’s inventory soybean trading volume decrease. Soybean meal side, actuals quotation sharply increased RMB 50-80/ton. Coastal district oil plant main quotation is RMB 3150-3220/ton. Overseas section rally increased import soybean cost, and simulated domestic purchasing need. Market trading volume increased, and basis sales are good. As for operation, the market is between old and new grain exchanging period. Market is seeking new hype point. As for operation, go short at high point and arbitrage with buying oil and selling soybean meal.
 
Copper
Tuesday copper market continued slightly rally. Largely dropped US dollar index bolsters copper price. LME physical discount enlarged $3.75 to discount $11, and inventory decreased 1775 tons to 205000 tons. LME Tuesday released holding report showed that till last Friday, LME funds holding volume decreased 2152 lots to 41656 lots. Recently COMEX shows funds holding volume turns to short. It shows that recent market popularity is weak. Increasing supply and bearish sales is the main pressure. Technically, copper price is rally in the short-term. LME resistant position is $4828/50, and domestically is RMB 37600/800. Wait for short opportunity after rally.
 
Dong LV (Investment Certificate NO. TZ008452)