Daily Report 050916

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; sales price is between RMB 3700/ton and 3800/ton. Market trading volume slightly increased compared with before. This limits price of dropping. Soybean meal side, actuals price is stable and weak. Following overseas section, quotation is between RMB 3080-3150/ton. Trading main body is stable and weak. Actuals trading is weak. The declining import cost dragged the soybean meal market. Domestic breeding industry recovery is worse than expectation. The pessimistic forward market caused feed enterprise and traders purchasing cautiously. Oil plant inventory stress increased. As for operation, US soybean is under seasonal roll back tendency. Prefer short or buying oil selling meal arbitrage.
 
PP
Last week PP futures fluctuated downward. Upstream side, till Friday night, Korea FOB PP average price is $810.5/ton. Actuals side, last week domestic actuals price continued fluctuation. Sinopec price is strong, and formed cost bolster. Traders profit surrender space is limited. But futures market is weak. Terminal needs are still weak. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 8000-8150/ton, RMB 8150-8350/ton and RMB 8300-8450/ton, respectively. Current although moving average system changes to downward, MACD green volume lengthens, and the tendency is weak. Recent tendency is most possible be weak. Pay attention to 60 days average pressure effectiveness.
 
Copper
Last week copper market narrowed fluctuated at low position. Last week three main exchanges inventory totally increased 34000 tons to 538000 tons. SHFE decreased 13000 tons, LME increased 47000 tons and COMEX increased 29 tons. LME physical still maintains at discount situation. Supply side, Salador in Chile strike deferred to Monday, and its predicted copper output is 63000 tons. CFTC positioning data shows that till last Tuesday, funds long position reduced 928 lots, and short position increased 14279 lots. Net positioning increased to 21873 lots. Technically, we focus on the effectiveness of low position bolster. LME is $4650 and domestically RMB 36700.
 
                                                                                                      Dong LV (Investment Certificate NO. TZ008452)