Daily Report 290916

Yesterday PP futures market continued fluctuation at high position; opened at 7171 and closed at 7176, and trading volume decreased 86166 lots to 245000 lots. Holding volume decreased 24578 lots to 649000 lots. Actuals side, yesterday domestic PP market of different market changed. Partial market is under the tendency of destocking. Intraday main quoted prices for wires of north China, east China and south China markets are RMB7850/ton, RMB 7850-7900/ton and RMB 7850-7950/ton, respectively. As for operation, now average system twisted. MACK formed golden cross, and showed the sign of rally. Rally range is doubtful. Recommend for observation.
Wednesday copper market meets support at 10 weeks average. Copper price ended with little increase. LME inventory decreased 2400 tons to 369000 tons yesterday. LME physical discount narrowed $1.25 to discount $17. Supply side, Olympic Dam of BHP recovered operation after temporary close because of electric suspension. Technically, copper price meets support during adjustment. Short term upward tendency exists.
Domestically, DCE soybean No. 1 contract and soybean night section rallied, but oil is weak. Domestic is near national day holiday, trading rhythm slowed. Northeast district soybean price is mostly stable and partial decreased. 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, soybean meal actuals price is stable and weak. Partial districts fluctuation range is between RMB 10-20/ton. Oil plant quotation is between RMB 3220-3280/ton. 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)