Daily Report 070916
Domestically, DCE soybean night section oil and meal strength has changed. Oil against meal ratio rallied. Actuals market is stable. The price returned to stable after slightly increase of early this week. Recent soybean market is at the edge of new and old alternate. New season soybean around Heilongjiang Suihua will come into market around 15 September. Before this market mainly trades oil soybean. 2013 soybean sales price focus on RMB 3800-3900/ton. Soybean meal side, actuals price is stable. Individual place slightly adjusted. 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.
Yesterday PP futures opened flat and increased; opened at 7158 and closed at 7311. Trading volume increased 254000 lots to 543000 lots. Holding volume increased 28206 lots to 676000 lots. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7950-80500/ton, RMB 8000-8250/ton and RMB 8050-8250/ton, respectively. Current although moving average system changes, MACD green volume shortened. Downward motion ended, and recommend for observation.
Tuesday copper market continued slightly fluctuated. Recent copper price is under stress of inventory increase. Tuesday LME inventory continued increase 6450 tons to 335000 tons. LME physical discount enlarged $2.25 to discount $14.75. Supply side, Chile Antucoya of Antofagasta copper mine reached planed capability. August copper output was 7000 tons. Next year output is predicted to be 85000 tons, 15000 to 20000 more than this year prediction. Technically, we focus on the effectiveness of low position bolster. LME is $4650 and domestically RMB 36700.
                                                                                                         Dong LV (Investment Certificate NO. TZ008452)