Daily Report 200916
Domestically, DCE Oil and meal strengthen fluctuated recently. Northeast district soybean price is stable. All districts are mainly national inventory soybean. This week national inventory auction continued. This week auction amount is 600000 tons. Inventory soybean storage is large, and trading volume is 1400000 tons till 15 July. The remaining inventory is account 5000000 tons, and will influence the coming into market soybean. Soybean meal side, actuals price totally increased. Quotation of most districts increased RMB 50-80/ton compared with period before festival. The expectation in port soybean of September and October is 11500000 tons. As for operation, buying oil selling meal arbitrage stops for observation. Ratio dropped below 2.05:1 then stop loss.
Yesterday PP futures market continued fluctuation; opened at 7100 and closed at 7102, and trading volume decreased 29516 lots to 222000 lots. Holding volume increased 6082 lots to 705000 lots. Actuals side, yesterday domestic PP futures market declined with RMB 50-100/ton. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7800-7900/ton, RMB 7750-7850/ton and RMB 7900-8000/ton, respectively. As for operation, current moving average system is short; MACD exposure downward extended as weak pattern, and recommend price fluctuation and downward trend.
Monday copper market adjusted at recent high position. LME inventory increased 625 tons to 350000 tons. LME physical discount enlarged $6.25 to discount $22.75. Now LME actuals discount is the lowest point of the year. Recent days LME inventory decreased 4575 tons from the highest 354000 tons of 12 September. Now the total inventory of three main exchanges and bonded area is still near the highest level of March of 1094000 tons and higher than the same period of last year. Inventory stress is still large. Technically, copper price has adjusted near high position. Temporarily wait for the Fed conference result.
                                                                                                Dong LV (Investment Certificate NO. TZ008452)