Daily Report 220816

Soybean
Domestically, DEC soybean tendency is different from overseas section. Oil and meal strong and weak situation is weaker form overseas section. But oil strong and meal weak tendency is obvious, and ratio increased. Heilongjiang all districts price is stable. Actuals purchasing and sales is sluggish. Actual trading is main old grain. National inventory soybean price is around RMB 3640-3800/ton. Totally domestic supply stress is huge. Last Friday national soybean auction deals 127000 tons. Trade rate is 21.2%. Average trading price is RMB 3279/ton. Soybean meal side, actuals price is stable of several places. Coastal oil plant main quotation is around RMB 3150-3220/ton. Actual market delivery is slow. 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
Last week PP futures continued fluctuation. Upstream side, till Friday night, FOB Korea PP average price was $765/ton. Actuals side, domestic market price is strong. With crude oil price remain high, Sinopec increased factory price. Traders quotes at high price, and observe market reflection. But downstream factory resistance motion is strong, and willing of receive goods is weak. Market total asking price motion is weak, and trading atmosphere is normal. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7950-8150/ton, RMB 8250-8400/ton and RMB 8400-8450/ton, respectively. Currently moving average system twines. MACD green columns shortened. Recently market will continue fluctuation. Recommend for observation.
 
Copper
Last week copper market rallied and resisted at 5 weeks moving average. Last week three main exchanges inventory increased 7917 tons to 452000 tons. SHFE decreased 1944 tons, LME increased 9500 tons and COMEX increased 361 tons. LME actuals discount goes weak under stress of inventory. Last week discount average enlarged $3.3 to discount $12.3. CFTC positioning data shows that till last Tuesday, funds net short position hasn’t change much; decreased 104 lots to 5074 lots. Recent funds net position turns from long to short should be concerned. Technically, copper price resists at 5 weeks moving average. LME is $4820 and domestically RMB 37600 of November. If the above resistant position is affective, copper price will continue go down. As for operation keep short with stop loss.
 
Dong LV (Investment Certificate NO. TZ008452)