Daily Report 180816

Soybean
Domestically, yesterday Soybean No. 1 contract price largely increased. Oil strong and meal weak tendency continued. Oil against meal ratio increased. Northeast district soybean price is stable. Old grain main price is RMB 3640-3800/ton. Old soybean is at an advantage with quantity and price. Traders are not enthusiastic about purchasing soybean of 2015. Soybean meal side, actuals quotation is stable this week. Coastal main oil plant 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.
 
PP
Yesterday PP futures opened low and dropped; opened at 7340 and closed at 7355. Trading volume increased 60662 lots to 306000 lots. Holding volume increased 38620 lots to 534000 lots. Actual side, yesterday domestic PP market price slightly increased. Partial Sinopec enterprise factory price increased, and bolstered the market. Futures price drop. Traders’ mindset is under strike. Goods holding traders’ quotation range bound. Sell willing is weak. Downstream factory high-position conflict emotion is strong. Market total firm offer trading volume is limited. Currently moving average system twines. MACD green column lengthened. Recently market will continue fluctuation and keep weak.
 
Copper
Wednesday copper market trading and investing is weak. Copper price rolled back with the pressure of inventory increase. But the following Fed minutes of meeting is not hawk enough. The weaken dollar bolstered copper price. LME inventory largely increased 7925 tons or 3.9% to 213000 tons. LME physical discount enlarged $4 to discount $15. According to State Statistics Bureau data, China July filtered copper output increased 9.6% to 722000 tons, which is highest of this year. The first seven months copper output increased 7.9% year-on-year to 4750000 tons. Technically, copper price is under adjustment in the short-term. We pay attention to resistant positon, which is $4800-4840 of LME and RMB 37300-37600 domestically.
 
Dong LV (Investment Certificate NO. TZ008452)