Daily Report 280916

PP
Yesterday PP futures opened high and fluctuated upward; opened at 7109 and closed at 7171, and trading volume increased 132000 lots to 332000 lots. Holding volume decreased 3532 lots to 674000 lots. Actuals side, yesterday domestic PP futures market shows narrowly fluctuated tendency. Intraday main quoted prices for wires of north China, east China and south China markets are RMB7700-7850/ton, RMB 7700-7850/ton and RMB 7700-7850/ton, respectively. As for operation, current moving average system is short; MACD exposure downward extended as weak pattern, and MACD green volume shortened.
 
Copper
Tuesday copper market continued rolling back. Copper price bolstered at 10 weeks average and recovered partial loss. From main reasons, LME inventory is at the highest level, and brings stress on copper price. LME inventory yesterday increased 7350 tons to 371000 tons. LME actuals discount narrowed $3.5 to discount $18.25. Supply side, Escondida of Chile from BHP copper output decreased 22% year-on-year to 54000 tons of the first half year. LME funds positioning data shows that till last Friday, Funds net positioning increased 15996 lots. Long positon decreased 427 lots to 121000 lots. Short position decreased 16423 lots to 82000 lots. From a technical point of view, copper prices rebounded in the recent highs have been adjusted. We focus on resistance at 10 weeks average; LME is $4760 and domestic is RMB 372000.in the recent highs have been adjusted, and we are waiting for copper to give signs of rebound end.
 
Soybean
Domestic side, DCE soybean was weak. Oil against meal ratio increased. Recently, Heilongjiang west, north and middle soybean come into market with small amount, and quotation is between RMB 3200-3700/ton, because the quality of soybean is different. Soybean meal side, actuals quotation is still strong. Oil plant quotation is between RMB 3200-3240/ton. Since soybean arrival amount is small, and oil plant stop operation phenomenon keeps increasing, domestic soybean inventory keeps decrease. As for operation, near national day holiday, be cautious for position. Can hold buying oil selling meal arbitrage position.
                                                                                                              
                                                                                                       Dong LV (Investment Certificate NO. TZ008452)