Daily Report 250816
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. All the districts purchasing and sales still focus on old grain. But recent sales volume has the tendency of decline. On the one side, old grain total quality is bad, and soybean product taste is bad. On the other side, Hu Bei Province new soybean comes into market in succession. Soybean meal side, actuals price is stable and weak. Several place quotation decreased RMB 10-20/ton. Costal district oil plant main quotation is RMB 3150-3220/ton. As for operation, go short at high point and arbitrage with buying oil and selling soybean meal.
Wednesday copper market decline accelerated. LME copper price decreased 1.64%. Domestic copper decreased 1.5%. Wednesday LME inventory continued largely increase 15000 tons, which is the third continuous days’ large increase, and totally is 44000 tons. This increase mostly happens in Asia inventory. From China export data, China May to July export volume reached 200000 tons. This increases market’s worry about LME inventory continuous increasing. Technically, copper price decreased sharply, in the short run will test triangle support line. LME is near $4570 and domestically is RMB 35700. As for trading recommend short and end loss.
Dong LV (Investment Certificate NO. TZ008452)