Daily Report 010916

Soybean
Domestically, DCE soybean dropped yesterday. 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. Soybean meal side, actuals price mostly dropped with RMB 20-30/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.
 
PP
Yesterday PP futures continued fluctuation; opened at 7265 and closed at 7274. Trading volume increased 105000 lots to 371000 lots. Holding volume increased 22340 lots to 618000 lots. Actuals side, yesterday domestic PP market was stable. Intraday main quoted prices for wires of north China, east China and south China markets are RMB8000-8200/ton, RMB 8200-8350/ton and RMB8250-8400/ton, respectively. Current although moving average system changes to downward, MACD green volume lengthens. Yesterday price ended above 60 days average; recommend for observation. 
 
Nature Rubber
Yesterday commodity market dropped. Till actuals trading time: domestic spots price is 1330-1340(0); domestic cargo price is 1270-1290(-10); US RSS spots price is 1520-1550(-10); US RSS cargo price is 1490-1540(-10); Singapore cargo price is 1290-1310(-10); Thai cargo price 1340-1350(0); mixed rubber price is 10300-10450(-100). Overall, total commodity atmosphere is tend to adjust, from rubber side, the structure of futures and actuals and gap between deferred and nearby months have adjustment space. Recommend short-term speculate.
 
Copper
Wednesday Copper market is weak. Copper price bolstered at 5 days average. LME inventory continued increase 10000 tons to 294000 tons. LME physical discount slightly narrowed $0.75 to discount 11.25. Since 22 August, LME inventory sharply increased continuously. Now has increased 83000 tons totally. Supply side, Chuquicamata of Chile national copper restarted operation after one day operation closed. This year’s planning output is 285000 tons. Mexico June copper output increased 11.9% year-on-year to 46000 tons. Technically, copper price is near this year side-way bolster position. Whether this position is affective will determine the core copper price will decrease.  
Dong LV (Investment Certificate NO. TZ008452)