Daily Report 300816

Soybean
Domestically, DCE soybean performance is better than overseas section. Oil and meal strengthen fluctuated recently, and the ratio is under upward tendency. Domestic soybean tendency is flat. Old soybean sales price is between RMB 3700/ton and 3800/ton. Partial place is RMB 3900/ton. Market purchase and sales is mainly national inventory soybean. Soybean of 2015 is not attractive because of high price. Northeast district will begin with heavy rain influenced by typhoon, which is good for drought remission. Soybean meal side, actuals quotation is stable totally. Individual place slightly dropped. Adjustment range is RMB 10-30/ton. Trading main body is stable and weak. Actuals trading volume slightly decreased. The lower price level and basis trading is better. As for operation, new grains are coming into market. Market is stressed and rolling back. Prefer short or buying oil selling meal arbitrage.
 
Stock Index
Yesterday stock index slightly fluctuated, and trading volume is low. 10 banks released 2016 first-half year financial statement. 42% of their newly increased loan is louse loan. 101 real estate enterprises released half-year financial statement. The total operating income is 522.8 billion; increased 37% year-on-year. But their fund leverage also largely increased, asset-liability ratio reached 65.68%. Total liability reached 3.74 trillion. Looking back the former two months fluctuation marker, it’s difficult to drop. Market collapse is only one or two days. But it’s also difficult to earn money to long. It lacks the main logic. Totally last week already dropped a lot. The recent price may have bolster. Fluctuation tendency remain with mid-term.
 
Copper
Monday LME closed because of bank holiday. Domestic copper market narrowly fluctuated at low positon and bolstered at 5 days average. Recent LME copper inventory continuously increased 5 days. Increase range reached 61000 tons. Whether further inventory will increase is still the market’s focus. G20 will take place in 3 September at Hangzhou. Recent copper consumption will be influenced. Technically, copper price is near this year side-way bolster position. Whether this position is affective will determine the core copper price will decrease. As for trading we recommend short and end loss. Loss limit point is at 5 days average.
                                                                                                         Dong LV (Investment Certificate NO. TZ008452)