Daily Report 140916
Domestically, DCE soybean fluctuated following overseas section. Oil and meal strengthen fluctuated recently. Northeast district soybean price is stable. All districts are mainly national inventory soybean. 2013 old soybean price is RMB 3800-3900/ton. From soybean meal side, spot market is mixed with up and down with range of RMB 10-40/ton. As for operation, buying oil selling meal arbitrage stops for observation. Ratio dropped below 2.05:1 then stop loss.
Yesterday PP market continued fluctuation; opened at 7138 and closed at 7096. Trading volume decreased 120000 lots to 313000 lots. Holding volume decreased 10088 lots to 718000 lots. Actuals side, yesterday domestic PP futures slightly dropped. Price mostly dropped RMB 50-100/ton. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7900-8000/ton, RMB 7900-8000/ton and RMB 7950-8200/ton, respectively. As for operation, current moving system changes, MACD green column lengthen, and recommend price fluctuation and downward trend.
Tuesday copper market continued low position fluctuation. Copper price meets resistance at the top, then meets bolster at the below. LME inventory decreased 825 tons to 353000 tons. LME physical discount narrowed $2.5 to discount $16.75. Supply side, Chile July copper output decrease 2.4% to 445000 tons. The early seven months of Chile copper output was 321000 tons totally, and deceased 5.2% year-on-year. The decrease of copper output is influenced by CODELCO, Escondida and Los Pelambres output decrease. Technically, we focus on the effectiveness of low position bolster. LME is $4670 and domestically RMB 36750.
                                                                                                                   Dong LV (Investment Certificate NO. TZ008452)