Daily Report 190816

Nature Rubber
Yesterday Shanghai rubber continued fluctuation. Actuals price has not much change. Domestic spots price is 1340-1350(0); domestic cargo price is 1320-1340(0); US RSS spots price is 1650-1680(-10); US RSS cargo price is 1650-1700(-10); Singapore cargo price is 1340-1370(-10); Thai cargo price 1360-1390(-30); mixed rubber price is 10650-10700(-100). Overall, the structure of forward and actuals and the contradiction brought by high inventory keep Shanghai rubber price with weak near month price and strong far month price. September long position closing stress exits. January contract is strong as a result of macro level long atmosphere. Although delivery month is near, the price is difficult to restrain. Recommend short-term speculate under long-short games.
Yesterday PP futures opened low and increased; opened at 7340 and closed at 7510. Trading volume increased 127000 lots to 433000 lots. Holding volume decreased 29402 lots to 505000 lots. Actuals side, yesterday PP market is flat. Individual Sinopec enterprises factory price increased. Bolster to market is relatively weak. Futures increased with fluctuation. Traders’ mindset is boosted. Goods holder quotation is high, and willing for sales is weak. Downstream factory purchasing enthusiasm is not good. Currently moving average system twines. MACD green columns shortened. Recently market will continue fluctuation. Recommend for observation.
Thursday copper market resists at average 40. Copper price rushed high and rolled back. LME inventory continued slightly increase 125 tons to 213000 tons. LME physical discount enlarged $1 to discount $16. Supply side, Poland KGHM company second season operating report shows that second season copper output was 135000 tons; decreased 6.19% year-on-year. Poland international copper output decreased 1.7% year-on-year to 23000 tons. Technically, copper price is under adjustment in the short-term. We concentrate on effectiveness of resistant position. LME is $4840 and domestic is RMB 37600.
Dong LV (Investment Certificate NO. TZ008452)