Daily Report 240816

Nature Rubber
Yesterday Shanghai rubber continued dropping. Night section decreased volume and slightly rallied. Actuals trading period quotation decreased: domestic spots price is 1330-1340(-10); domestic cargo price is 1290-1310(-10); US RSS spots price is 1610-1640(-20); US RSS cargo price is 1610-1660(-20); Singapore cargo price is 1310-1330(-10); Thai cargo price 1330-1360(-10); mixed rubber price is 10500-10600(-150). 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. Pay attention to how the price gap fixes at September. Recommend short-term speculate under long-short games.
Domestically, DCE soybean rallied following overseas section. Oil against meal ratio rallied again. Northeast China district old soybean sales still concentrated at RMB 3640-3840/ton. Recent weeks inventory soybean auction cost decreased. Soybean meal side, quotation is stable and increased, and increase range is RMB 20-50/ton. Costal district oil plant main quotation is RMB 3150-3220/ton. Following overseas section, DCE soybean meal will continue increase. As for operation, go short at high point and arbitrage with buying oil and selling soybean meal.
Yesterday PP futures market opened high and increased; opened at 7468 and closed at 7601. Trading volume increased 49810 lots to 341000 lots. Holding volume increased 30284 lots to 531000 lots. Actuals side, yesterday Sinopec factory price slightly fluctuated, and bolstered the market cost. Traders’ quotation is mainly stable, and slightly profit surrender. Terminal needs are not high. Downstream factory purchasing enthusiasm is low. Currently moving average system twines. MACD green columns shortened. Recently market will continue fluctuation. Recommend for observation.
Yesterday copper market was weak. Domestic and overseas copper price continued drop. LME reached $4694, which is the lowest point of the rolling back. Tuesday LME inventory continued increasing 11000 tons to 240000 tons. LME physical discount enlarged $2.5 to discount $17.5. Two continuous days inventory sharply increased made LME inventory reached the highest point since 29 January. Market’s worry about copper market needs increased. LME funds positioning data shows that till last Friday, net positioning data decreased 1939 lots. The main reason is long position reduce. Technically, we prefer copper price downward tendency still exits. As for trading recommend short.
                                                                                                          Dong LV (Investment Certificate NO. TZ008452)