Daily Report 120916

Domestically, DCE soybean fluctuated following overseas section. Oil and meal strengthen fluctuated recently, and the ratio is under upward tendency. Northeast China district soybean price keeps stable; 2015 soybean price is between RMB 4100/ton and 4200/ton. 2013 old soybean price is RMB 3840-3900/ton. Soybean meal side, soybean meal actuals price slightly increased. Individual places and oil plants operate stable. Quotation is between RMB 3100-3180/ton. Recent price has the signal of ending drop and increasing. As recent oil plant operation rate declines and market trading is good. US soybean high yield expectation is the biggest bearish market signal. Domestic soybean meal is dropped. Prefer buying oil selling meal arbitrage.
Last week PP futures continued fluctuation. Upstream side, till Friday night, Korea FOB PP average price is $845.5/ton. Actuals side, last week PP markets price slightly dropped. Early month Sinopec decreased factory price. Futures market is weak and market mindset is weak. Upstream enterprise price loosing tendency is strong. Raw material enterprise outbound policy will influence market price tendency. As for operation, current moving average system twisted; MACD exposure downward extended as weak pattern, and recommend price fluctuation and downward trend.
Last week copper market slightly fluctuated at low position. Copper price bolstered at 5 days average. Last week three main exchanges inventory totally increased 25000 tons to 563000 tons. SHEX decreased 8688 tons, LME increased 321000 tons and COMEX increased 1348 tons. LME physicals are still at the state of discount, and Friday was discount $18.5. Supply side, Salvador of CODELCO ended 5 days strike and accepted salary clause. Los Bronces of Anglo American workers have stroke for 3 days. Last year copper output was 402000 tons. Technically, we focus on the effectiveness of low position bolster. LME is $4660 and domestically RMB 36750.
                                                                                                      Dong LV (Investment Certificate NO. TZ008452)