Daily Report 060916
Domestically, DCE soybean night section continued strong oil and weak meal tendency. Oil against meal ratio increased. Northeast district soybean price is stable and upward. Qiqihaer Nahe, Baiquan, Suihua Wangkui and Neimenggu partial districts 2013 old soybean price increased RMB 60/ton. But inventory soybean auction trading ratio and price increased, which boosts the market price. Individual districts and oil plants price adjusted, with range of RMB 10-30/ton. Quotation is between RMB 3080-3150. 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.
Yesterday PP futures opened low and dropped; opened at 7198 and closed at 7140. Trading volume decreased 184000 lots to 288000 lots. Holding volume decreased 4666 lots to 647000 lots. Actuals side, yesterday domestic PP market dropped with RMB 50-100/ton. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7950-8100/ton, RMB 8100-8250/ton and RMB 8200-8250/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.
Monday copper market continued slightly fluctuated. Copper price bolstered at 10 days average. LME inventory yesterday continued increased 10000 tons to 329000 tons. LME physical discount enlarged $4.25 to discount $14.75. Since 22 August, LME inventory has continuously increased for 10 days, and reached 118000 tons. Most increases are from Asia inventory. LME Asia inventory increased 111000 tons. Now LME inventory has reached relative high position of recent years. Supply side, Salador in Chile strike started on Monday; workers closed the mines entrance. Its predicted copper output is 63000 tons. Technically, we focus on the effectiveness of low position bolster. LME is $4650 and domestically RMB 36700. we focus on the effectiveness of low position bolster. LME is $4650 and domestically RMB 36700.
                                                                                                 Dong LV (Investment Certificate NO. TZ008452)