Daily Report 310816

Domestically, DCE soybean went downward follows overseas section. Oil and meal strengthen fluctuated recently, and the ratio is under upward tendency. Northeast China district soybean price keeps stable. Old soybean purchase and sales occupies a dominant. Old soybean sales price is between RMB 3700/ton and 3800/ton. Partial place is RMB 3900/ton. Northeast district will begin with heavy rain influenced by typhoon, which is good for drought remission. Soybean meal side, individual places actual price slightly fluctuated with 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.
Yesterday PP futures fluctuated at low position; opened at 7252 and closed at 7262. Trading volume decreased 239000 lots to 265000 lots. Holding volume decreased 24990 lots to 595000 lots. Actuals side, yesterday domestic PP futures continued slightly fluctuation tendency. Supply of goods tightened, and most Sinopec districts factory price bolstered the market. Intraday main quoted prices for wires of north China, east China and south China markets are RMB8200-8250/ton, RMB 8200-8350/ton and RMB8400-8500/ton, respectively. Current although moving average system changes to downward, MACD green volume lengthens. Yesterday price ended above 60 days average; recommend for observation.
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.
Nature Rubber
Yesterday Shanghai rubber price rushed high and rallied. Till actuals trading time: domestic spots price is 1330-1340(+10); domestic cargo price is 1280-1290(+10); US RSS spots price is 1530-1550(0); US RSS cargo price is 1500-1540(0); Singapore cargo price is 1300-1310(0); Thai cargo price 1340-1350(+10); mixed rubber price is 10400-10500(-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. Pay attention to how the price gap fixes at September. Recommend short-term speculate under long-short games.
Tuesday copper market was weak. Copper price bolstered at 5 days average. LME inventory continued increase 12000 tons to 283000 tons. LME physical discount enlarged $0.5 to discount $12. But that day two mines had accidents. One is two people died because of chuck collision of Chuquicamata of Codelco. The mining operation has been stopped. This year’s planning output is 285000 tons. And Free Port El Abra in Chile terminal suspended because of terminal accident. 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)